Gold rises on softer dollar, oil as markets weigh US-Iran peace optimism
Thu June 04 2026
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 0.7% at $4,461.09 per ounce, as of 0218 GMT. U.S. gold futures
for August delivery gained 0.5% to $4,487.90.
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 on Wednesday 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 in
early trade 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 0.7% to $1,872.11,
and palladium added 0.9% to $1,313.51.
Source: http://in.reuters.com