Shafaq News
Gold prices gained on Thursday, supported by lower crude oil prices and a weaker dollar, as investors assessed renewed expectations for a resolution to the U.S.-Israeli war with Iran.
Spot gold was up 0.8% at $4,468.84 per ounce, as of 0559 GMT. U.S. gold futures for August delivery gained 0.7% to $4,495.70.
The dollar eased, making greenback-priced bullion more affordable for holders of other currencies.
"Gold's gains are still very much at the mercy of oil and the dollar. It only moves higher when they pull back, making it highly dependent on positive U.S.-Iran headlines for any sustained momentum," said Tim Waterer, chief market analyst at KCM Trade.
Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, boosting hopes for a broader deal to end the Iran conflict.
The Republican-led U.S. House of Representatives approved a resolution to block U.S. President Donald Trump from continuing the war against Iran, reflecting growing concern among members of his party about the three-month-old conflict.
Oil prices eased on Thursday, as the ceasefire between Lebanon and Israel boosted hopes of a U.S.-Iran peace deal.
Elevated oil prices can accelerate inflation and keep interest rates higher for longer. While gold is seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.
New York Federal Reserve President John Williams noted that he does not expect upside risks to inflation caused by the war in the Middle East to be long-lasting and reiterated there was no need at this time to change U.S. monetary policy.
"I don't think we've seen the end of the bull run, but it is clearly time for a shakeout in general. So I anticipate choppy trade as we head into the year-end, with a slight upwards bias of around $5,000," said Matt Simpson, a senior analyst at StoneX.
Spot silver rose 0.6% to $73.13 per ounce, platinum gained 0.9% to $1,875.70, and palladium added 0.3% to $1,306.
(REUTERS)
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