Global gold prices continued to rise on Wednesday after Trump announced a two-week delay in an attack on Iran, causing investors to reassess short-term risks and easing concerns about inflation driven by energy prices.
Spot gold prices surged 2.3% to $4,811.66 per ounce after gaining 1.2% the previous day, while US June gold futures rose 3.3% to $4,840.20 amid ongoing uncertainty.
This increase followed Trump's announcement of a temporary halt to the attack on Iran and his disclosure of receiving a 10-point peace proposal from Iran, which is seen as a basis for negotiations.
Previously, the US had pressured Iran to keep the Strait of Hormuz open, warning of military retaliation otherwise.
However, analysts say this gold price rise may be a short-term buying surge from positive news, and it remains to be seen whether Iran, the US, and Israel will comply with the terms.
Key resistance levels for gold are at the 200-day moving average of $4,930 and the psychological $5,000 mark, while silver faces significant resistance at $80–81 per ounce.
Analysts warn that if the conflict disrupts global oil transport, inflation could spike. Data from the Federal Reserve Bank of Dallas indicate that prolonged energy trade disruptions could push US inflation above 4% by year-end, with sharp short-term increases.
Although gold is a safe haven and inflation hedge, high interest rates reduce its appeal since it yields no interest. Despite recent price rebounds, gold has declined over 8% since the Iran conflict began on 28 February.
In the broader metals market, other precious metals also rose: silver up 4.3% to $76.08 per ounce, platinum up 2.4% to $2,004.95, and palladium up 2.1% to $1,500.
.source :channelnewsasia
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