Gold held steady on Thursday, as fears of oil-driven inflation and higher global interest rates were offset by optimism around a potential U.S.-Iran peace deal.
Spot gold was unchanged at $4,543.96 per ounce by 0104 GMT. Bullion gained more than 1% on Wednesday after falling to its lowest level since March 30 earlier in the day.
U.S. gold futures for June delivery gained 0.2% to $4,545.50.
U.S. President Donald Trump on Wednesday said negotiations with Iran were in the final stages but warned of further attacks unless Iran agreed to a deal, adding that Washington could wait a few days to “get the right answers.”
Iran warned against renewed attacks. “If aggression against Iran is repeated, the promised regional war will extend beyond the region this time,” the Revolutionary Guards said in a statement.
U.S. Treasury yields and oil prices fell on Wednesday as hopes increased that the U.S. is nearing a deal with Iran to end the war in the Middle East, while major stock indexes rose. [MKTS/GLOB]
Minutes of the Federal Reserve’s April meeting showed a majority of Fed policymakers felt “some policy firming would likely become appropriate” if inflation stays persistently above the central bank’s 2% target.
Fed officials also noted that a steady jobless rate and two months of stronger-than-expected job creation indicate the employment market remains resilient and is not in need of lower interest rates to prop it up.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,041.74 metric tons on Tuesday. [GOL/ETF]
Spot silver was steady at $75.96 per ounce, platinum lost 0.2% to $1,947.37, and palladium fell 0.1% to $1,368.75.
