Gold prices fluctuated near US$4,000 per ounce on Tuesday (June 30th), as market participants weighed conflicting signals from the United States and Iran. Tensions between the two countries remain a major concern, potentially keeping global inflationary pressures high.
Spot gold rose 0.4% to around US$4,030 per ounce after previously falling as much as 1.8% in early Asian trading. Washington stated that negotiations with Tehran are scheduled to take place in Doha, while Iran said it would only send an expert delegation and reject direct talks.
Uncertainty also stems from Iran’s plan to maintain control of traffic in the Strait of Hormuz. This move has drawn opposition from the United States, Europe, and Gulf Arab states, as this route is a key chokepoint for global energy trade.
Although oil prices have retreated from their previous surge, the market still expects central banks to maintain high interest rates for longer. This puts pressure on gold, as the precious metal offers no yield. Saxo Bank analyst Ole Sloth Hansen believes gold needs to break through the US$4,100 level before it can be considered a short-term bottom.
At 8:54 a.m. London time, spot gold rose 0.4% to US$4,030.30 per ounce. Silver strengthened 1% to US$58.86 per ounce, platinum weakened, and palladium rose 1%. Meanwhile, the Bloomberg Dollar Spot Index strengthened 0.2% after weakening in the previous three sessions. (asd)
Source: Newsmaker.id