Gold stabilizes amid a “fragile truce” between America and Iran and anticipation of inflation data
Gold prices largely stabilized today, Thursday, amid investors’ caution over the fragility of the truce between The price of gold in spot transactions was $4721.51 per ounce, by 05:23 GMT, while US gold futures (June delivery) fell by 0.7% to $4744.90 per ounce.
In other precious metals, the price of silver decreased slightly by 0.1% to $74.07 per ounce, and the price of platinum fell by 0.4% to 2020.60 dollars, while palladium rose 0.3% to 1559 dollars.
Brian Lane, Managing Director of the company said: "Gold Silver Central": "Gold does not appear to be a candidate for significant gains at the moment. I think there is a lot of speculation about what will happen after the ceasefire"He added that he expected the price of gold to stabilize between $4,607 and $4,860 in the near term.
The spot price of gold has fallen by more than 10% since the start of the war on February 28, as rising energy prices fueled fears of inflation and prompted markets to re-evaluate interest rate expectations, reducing the attractiveness of gold, which is considered a non-return-generating asset.
The minutes of the Federal Reserve meeting held in During the period from March 17 to 18, the majority of monetary policy makers see the necessity of raising Interest rates to combat inflation, which has continued to exceed the central bank’s 2% target.
US personal consumption spending data for February is due at 12:30 GMT, and March consumer price data on Friday may provide further indication of the Fed’s policy path.
Standard Chartered said in a note on Wednesday: "Combined with short-term liquidity needs, we expect gold to continue to claw back gains in the coming months amid escalating geopolitical risks".
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