Gold Prices Rise Again Following Trump’s Comments
1 April 16:21
Gold rose on Wednesday, April 1, to a two-week high as the dollar and U.S. Treasury yields weakened amid signs of de-escalation in the Iran conflict. In March, the precious metal recorded its sharpest monthly decline since October 2008.
This is reported by "Komersant Ukrainian" citing Reuters.
The spot price of gold rose 1.56% to $4,742.32 per troy ounce by 2:20 p.m. Kyiv time, reaching its highest level since March 19 during the session.
Gold fell by more than 11% in March. Washington made it clear on Tuesday that the war against Iran is coming to an end, signaling both the possibility of direct negotiations with Tehran and the end of the conflict even without a deal. U.S. President Donald Trump will deliver a televised address on Iran on Wednesday evening (4:00 a.m. Kyiv time on Thursday).
“Sentiment improved following Donald Trump’s latest statement, and the dollar index weakened while the euro rose against the dollar. Bond futures and interest rate futures rose, indicating that the opportunity cost of holding gold has decreased,” said Peter Fertig of Quantitative Commodity Research.
The dollar fell to a one-week low, making gold less expensive for holders of other currencies. Yields on 10-year Treasuries fell to a nearly two-week low. Although gold is often used as a hedge against inflation and geopolitical risks, expectations of hawkish monetary policy have reduced the precious metal’s appeal.
“The market sometimes shifts the narrative on gold as a safe-haven asset,” said Fertig. “If inflationary pressures become more pronounced, gold could plummet alongside stocks, as markets fear that central banks, particularly the Fed, will keep rates at current levels.”
Palladium rose 0.73% to $1,487.5 per ounce, while silver remained stable near $75.09 per ounce.
The price of platinum rose by 1.18% to $1,971.71.
