Gold rises on softer dollar, oil as markets weigh US Iran peace optimism

Old prices gained today (4 June), supported by lower crude oil
prices and a weaker dollar, as investors assessed renewed expectations for a
resolution to the US-Israeli war with Iran.
Spot gold was up 0.8% at $4,468.84
per ounce, as of 0559 GMT. US gold futures for August delivery gained 0.7% to
$4,495.70.
"Gold's gains are still very
much at the mercy of oil and the dollar. It only moves higher when they pull
back, making it highly dependent on positive US-Iran headlines for any
sustained momentum," said Tim Waterer, chief market analyst at KCM Trade.
Israel and Lebanon agreed to implement a ceasefire to end hostilities, the
Trump administration said yesterday, boosting hopes for a broader deal to end
the Iran conflict.
The Republican-led US House of
Representatives approved a resolution to block US President Donald Trump from
the war against Iran, reflecting growing concern among members of his party
about the three-month-old conflict.
Oil prices eased today, as the
ceasefire between Lebanon and Israel boosted hopes of a US-Iran peace deal.
Elevated oil prices can accelerate
inflation and keep interest rates higher for longer. While gold is seen as a
hedge against inflation, higher rates tend to weigh on the non-yielding metal.
New York Federal Reserve President
John Williams noted that he does not expect upside risks to inflation caused
by the war in the Middle East to materialise and reiterated that there
was no need at this time to change US monetary policy.
"I don't think we've seen the
end of the bull run, but it is clearly time for a shakeout in general. So I
anticipate choppy trade as we head into the year-end, with a slight upward
bias of around $5,000," said Matt Simpson, a senior analyst at StoneX.
Spot silver rose 0.6% to $73.13 per
ounce, platinum gained 0.9% to $1,875.70, and palladium added 0.3% to $1,306.
















