Gold prices decline 1% with anticipation of calm efforts in the Middle East
Gold prices fell by about 1% during trading today, Thursday, after two consecutive sessions of gains, with investors awaiting clear indicators regarding the progress of calming efforts in Goldin spot transactions rose by 1% to $4,476.51 per ounce by 05:55 GMT, while US gold futures for April delivery fell by 2.1% to $4,457.
This decline comes in light of conflicting statements regarding the course of the conflict, while US President Donald Trump said that Iran is desperately seeking to conclude an agreement to end the war that has been going on for about four weeks, while the Iranian Foreign Minister confirmed that his country is considering An American proposal, but it does not intend to enter into negotiations to end the conflict.
Kyle Rodda, senior financial markets analyst at "Capital.com"Gold movements during the next 24 to 48 hours will remain hostage to news related to the negotiations.
He pointed out that the largest movements may become clear at the beginning of next week, with it becoming clear whether the United States will conduct a ground military intervention in Iran, according to Reuters.
In an additional escalation, Trump pledged to intensify pressure on Iran if it refuses to acknowledge military defeat, according to what was reported by White House spokeswoman Carolyn Levitt.
Oil Prices
On the other hand, Brentrose above $100 a barrel, amid fears that the continuation of the conflict in the Middle East would lead to further disruptions to energy supplies.
Since the outbreak of war between the United States, Israel and Iran, Tehran has launched attacks on countries hosting American bases, and has effectively caused the closure of the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas supplies pass.
High oil prices usually lead to increased pressures. Inflationary by raising transportation and manufacturing costs, and although inflation supports gold as a safe haven, high interest rates reduce the attractiveness of the metal that does not generate a return.
According to a tool "Feed Watch" belonging to a group "CME"The chances of lowering US interest rates this year are currently diminishing to almost non-existent levels, compared to previous expectations that indicated at least two cuts would be implemented before the outbreak of the conflict.
With regard to other metals, silver fell by 1.9% to $69.90 per ounce, platinum also fell by 1.4% to $1893.60, and palladium fell by 2% to $1394.83.
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