Gold prices climbed to a three-week high following a temporary ceasefire agreement between the US and Iran. After surging more than 3% earlier in the session, spot gold advanced approximately 1.8% further to around $4,794 per ounce. Silver demonstrated even stronger performance, rising nearly 5%, while platinum and palladium also recorded significant gains.
Concurrently, the US dollar weakened, with the dollar index falling to around 98.9. Oil prices retreated as concerns over supply disruptions eased. Superficially, this appears counterintuitive—one might expect gold to cool when tensions ease—but the reality differs.
The genuine reason lies in the unchanged broader landscape. Uncertainties persist regarding interest rates, energy, and the actual stability of the ceasefire itself. Combined with sustained buying from China, these factors provide sufficient support to propel gold higher even without further escalation.
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