Gold Stalls Near Peak as Peace Hopes Dampen Safe Haven Bid

SEATTLE (Scrap Monster): Spot gold held steady at $4,785.57 per ounce on Wednesday after retreating from its highest level in a month. US gold futures slipped 0.3% to $4,808.30 per ounce as expectations of a US-Iran peace deal strengthened.

Growing expectations of a US-Iran diplomatic agreement are the primary factor pressuring precious metals demand. President Trump announced a ceasefire beginning at 21:00 GMT aimed at reducing Israel-Hezbollah tensions.

In March, geopolitical concerns from US-Israel strikes on Iran had driven a sharp gold rally. However, "as expectations for reduced energy prices and easing inflation pressures build, demand for traditional safe havens has softened."

Silver fell 1% to $78.29 per ounce while platinum declined 0.6% to $2,096.20 per ounce. Palladium also dropped 0.7% to $1,561.50 per ounce under the same pressure.

Rate Cut Outlook

David Meger, trading director at High Ridge Futures, believes geopolitical de-escalation could give the Federal Reserve greater flexibility to ease monetary policy. Markets currently estimate a 32% probability of rate cuts in 2026.

As a non-yielding asset, gold becomes less attractive when rates stay elevated. However, potential Fed easing amid conflict resolution could serve as a positive catalyst for gold prices going forward.

Courtesy: www.heygotrade.com