Gold Holds, Peace Hopes Support
Gold prices held around US$4,061 per troy ounce in Tuesday's Asian trading session (July 28th), after rising 0.6% in the previous session. Spot gold then traded slightly lower at US$4,073.05 per troy ounce.
Gold's movement was supported by President Donald Trump's statement that the United States and Iran were in talks to end the conflict. Trump believes there is a chance of reaching an agreement.
Peace hopes help reduce the risk of military conflict and put downward pressure on oil prices. The United States has held off on attacks on Iran for three days, while Tehran has also halted attacks on countries in the Gulf region.
However, Trump's threat of a recurrence if negotiations fail has kept investors cautious and maintained demand for gold.
The market is also awaiting the Federal Reserve's interest rate decision. The probability of a 25 basis point rate hike on Wednesday is estimated at around 40%, as the market weighs pressure on energy prices and US inflation.
As long as US-Iran talks continue and oil prices weaken, gold remains near US$4,000. However, a Fed rate hike or a resurgence of conflict could trigger sharper price movements. (asd)*
Source: Newsmaker.id
