Gold Futures Advance as Middle East Tensions Ease

Deep News10:10

Analysts indicate that gold futures are rising amid a de-escalation of Middle East tensions. According to Vivek Dhar of the Commonwealth Bank of Australia in a research note, the easing of tensions followed "Trump's announcement to temporarily suspend a US-led plan to provide safe passage for vessels through the Strait of Hormuz." The analyst noted that since gold hit an intraday high of $5,422 per ounce on March 2, the movement of gold futures has largely been inversely correlated with the direction of Middle East tensions. Dhar added, "Gold's advance may be driven by any hopes of a ceasefire in the Middle East, market expectations for interest rate cuts as high energy prices weigh on global growth, and concerns about the Federal Reserve's independence." Spot gold was last up 1.5%, at $4,625.28 per ounce.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment