Gold extends gains on Iran peace deal hopes, weaker dollar
The dollar index edged down 0.1% in Asian hours after slipping 0.4% overnight, hovering near pre-war levels.
SEATTLE (Scrap Monster): Gold prices edged higher in Asian trading on Thursday after climbing about 3% in the previous session, as hopes for a U.S.-Iran peace agreement eased some inflation concerns, while a weaker dollar also aided demand.
Spot gold was last up 0.4% at $4,707.31 an ounce by 22:21 ET (02:21 GMT). U.S. Gold Futures for June rose 0.4% to $4,713.86.
The yellow metal climbed 2.9% on Wednesday -- its biggest daily gain since late March -- as oil prices tumbled sharply on expectations that tensions in the Middle East could ease.
Market sentiment improved after Axios reported that the White House was nearing a deal with Iran on a memorandum of understanding aimed at ending the conflict.
Iran said it was reviewing the proposal, while U.S. President Donald Trump said he believed Tehran wanted an agreement.
The prospect of lower energy prices helped reduce fears of a prolonged inflation shock, dragging U.S. Treasury yields and the dollar lower and boosting appetite for non-yielding bullion.
The dollar index edged down 0.1% in Asian hours after slipping 0.4% overnight, hovering near pre-war levels.
Oil prices had plunged more than 7% on Wednesday after reports of progress in negotiations, although crude steadied on Thursday as investors awaited further clarity on the talks.
Investors are now awaiting Friday’s U.S. non-farm payrolls report for further clues on the Federal Reserve’s interest-rate path after recent comments from Fed officials highlighted concerns that the Middle East conflict could still fuel inflation and disrupt supply chains.
Among other precious metals, silver prices rose 0.7% to $77.85/oz, while platinum traded flat at $2,065.17/oz.
Courtesy: www.investing.com