Gold Prices Rebound

Gold Prices Rebound as Markets Assess US-Iran Peace Deal and Federal Reserve Rate Outlook

Gold prices edged higher on Thursday, recovering from losses recorded in the previous session as investors weighed the impact of a temporary US-Iran peace agreement against the Federal Reserve’s signals of potential interest rate hikes later this year.

Spot gold rose 0.3% to $4,269.42 per ounce as of 16:46 GMT, while gold futures slipped 2.1% to $4,288.72 per ounce.

The precious metal had fallen 1.7% in the prior session after a stronger US dollar and rising Treasury yields followed the Federal Reserve’s latest monetary policy decision.

Bullion prices found support from growing optimism surrounding the US-Iran agreement, which is expected to ease geopolitical tensions in the Middle East and pave the way for the reopening of critical energy export routes.

The 14-point memorandum initiates a 60-day negotiation period during which Iran will allow toll-free navigation through the Strait of Hormuz. Under the agreement, traffic through the strategic waterway is expected to return to full capacity within 30 days.

The development has helped reduce concerns over prolonged oil supply disruptions, easing fears of energy-driven inflation while supporting demand for gold as a portfolio hedge against market uncertainty.

However, gains in gold prices remained limited after the Federal Reserve left interest rates unchanged at 3.50%–3.75% on Wednesday and indicated that policymakers still see room for additional monetary tightening later this year.

Updated projections revealed that nine of the 19 Federal Reserve officials expect at least one interest rate increase in 2026, marking a notable shift from expectations seen earlier this year.

XAU/USD Outlook

In his first meeting as Federal Reserve Chair, Kevin Warsh maintained a hawkish stance on inflation, emphasizing the central bank’s commitment to restoring price stability.

The Fed also raised its inflation forecasts, prompting investors to scale back expectations for future rate cuts and boosting the US dollar.

A stronger dollar typically makes dollar-denominated gold more expensive for overseas buyers, while higher interest rates increase the opportunity cost of holding non-yielding assets such as gold bullion.

As investors continue to monitor monetary policy developments and geopolitical events, gold prices are expected to remain sensitive to changes in inflation expectations, interest rate projections, and global risk sentiment.

Share:

Read More

Gold Eyes Fed

Gold Extends Winning Streak to Five Sessions as Iran Deal Eases Inflation Concerns Ahead of Fed Decision

Gold prices edged higher during Asian trading on Wednesday, marking a fifth consecutive session of gains as a temporary peace agreement between the United States and Iran eased concerns over energy-driven inflation. Meanwhile, investors remained focused on the Federal Reserve's highly anticipated policy decision later in the day.

Spot gold rose 0.3% to $4,342.56 per ounce as of 09:20 WIB, while U.S. Gold Futures gained 0.3% to $4,368.40 per ounce.

The precious metal has now advanced for five straight trading sessions after rebounding from multi-month lows near the $4,000 per ounce level.

Market sentiment has been supported by growing optimism surrounding the U.S.-Iran peace agreement, which aims to reduce tensions across the Middle East. The deal includes provisions allowing Iran to resume oil exports while extending the ceasefire as negotiations continue.

The agreement has contributed to a sharp decline in crude oil prices, helping to ease fears of another inflationary shock. Lower energy prices have prompted investors to scale back expectations for tighter monetary policy, creating a favorable environment for non-yielding assets such as gold.

Gold has also benefited from continued weakness in the U.S. dollar, with the U.S. Dollar Index hovering near a 10-day low. A softer dollar generally makes gold more attractive to holders of other currencies, providing additional support for bullion prices.

Focus Shifts to Federal Reserve Policy Decision

Investor attention is now firmly fixed on the Federal Reserve's first policy announcement under Chair Kevin Warsh. While the central bank is widely expected to leave interest rates unchanged, traders will closely analyze the updated economic projections and the closely watched “dot plot” for clues regarding the future path of monetary policy.

The market remains highly sensitive to any signals indicating whether policymakers still see room for interest rate cuts later this year.

A more hawkish stance from the Fed could push U.S. Treasury yields and the dollar higher, potentially limiting gold's recent rally. Conversely, dovish signals could further strengthen the precious metal's bullish momentum.

Central Bank Demand Continues to Support Gold

Underlying demand for gold remains robust. According to the latest World Gold Council survey, 45% of central bank reserve managers plan to increase their gold holdings over the next 12 months. The findings highlight gold's enduring appeal as a portfolio diversification tool and a hedge against geopolitical uncertainty.

Among other precious metals, silver rose 0.6% to $70.47 per ounce, while platinum gained 0.4% to $1,815.72 per ounce.

XAU/USD Outlook

The near-term outlook for XAU/USD will largely depend on the Federal Reserve's policy guidance and market expectations for future interest rate adjustments. While easing geopolitical risks have improved overall market sentiment, persistent central bank demand and a weaker U.S. dollar continue to provide strong support for gold prices.

Share:

Read More

Gold Holds Steady

Gold Prices Hold Steady as Markets Focus on Iran Deal and Central Bank Meetings

Gold prices remained largely unchanged during Asian trading on Tuesday as investors awaited further details on the U.S.-Iran peace agreement while shifting their attention to a busy week of major central bank meetings, led by the Federal Reserve.

Spot gold edged up 0.3% to $4,321.43 as of 13:59 WIB, holding near a one-week high after Monday’s strong rally. Meanwhile, U.S. gold futures slipped 0.2% to $4,343.07.

Bullion surged more than 2% on Monday after Washington and Tehran announced a preliminary agreement aimed at ending their conflict and reopening the Strait of Hormuz. The development eased inflation concerns and weighed on the U.S. dollar, providing support for precious metals.

The proposed peace framework, expected to be formally signed later this week, triggered a sharp decline in oil prices and boosted risk sentiment across global financial markets.

Brent crude fell to a three-month low on Monday, while global equities advanced on expectations that lower energy costs could help ease inflationary pressures.

However, investors remain cautious and are awaiting additional details regarding the implementation timeline of the agreement, as both nations acknowledged that a permanent ceasefire still requires further negotiations.

Market attention is now turning to a series of key central bank policy decisions scheduled for this week.

The Bank of Japan (BOJ) raised its short-term policy rate by 25 basis points to 1.0%, marking its highest level in 31 years. The widely anticipated move is part of the BOJ’s gradual effort to normalize monetary policy and contain inflation.

XAU/USD Outlook

Meanwhile, the Reserve Bank of Australia (RBA) left its benchmark interest rate unchanged at 4.35%, following three consecutive rate hikes.

Traders are now closely watching upcoming policy announcements from the U.S. Federal Reserve and the Bank of England later this week. Particular attention will be given to remarks from Federal Reserve Chair Kevin Warsh for clues regarding the future path of U.S. interest rates.

Higher borrowing costs typically weigh on non-yielding assets such as gold by increasing the opportunity cost of holding the metal. Recent U.S. inflation data and persistent concerns over price pressures have prompted investors to scale back expectations for interest rate cuts this year.

The U.S. Dollar Index rose 0.1% on Tuesday after touching a 10-day low in the previous session.

Among other precious metals, silver fell 0.3% to $69.76 per ounce, while platinum gained 0.2% to $1,776.60 per ounce.

In the base metals market, benchmark copper futures on the London Metal Exchange declined 0.6% to $13,677.33 per metric ton, while U.S. copper futures dropped 0.7% to $6.45 per pound.

Share:

Read More