Gold (XAU/USD) trades with a downside bias on Thursday, struggling to build on the previous day’s rebound from seven-week lows as markets digest fresh headlines surrounding the US-Iran war.
At the time of writing, XAU/USD trades around $4,507, down nearly 0.80% on the day
In the latest developments, Reuters reported earlier on Thursday, citing two senior Iranian sources, that Iran’s Supreme Leader has ordered that near-weapons-grade uranium must remain inside the country. The report dampened hopes for a near-term breakthrough in negotiations as limiting Iran’s nuclear programme remains one of Washington’s main demands and could complicate ongoing efforts to end the war in the Middle East. Earlier, Iranian media outlet Tasnim News Agency reported that Tehran is reviewing a new draft proposal sent by the United States (US) in response to its 14-point proposal.
The update came after US President Donald Trump said on Wednesday that negotiations with Iran were in the “final stages,” though he warned that military action could resume if no deal is reached. Lingering uncertainty surrounding the conflict is supporting safe-haven demand for the US Dollar (USD), with the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, hovering near more than one-month highs above the 99.00 mark. At the same time, elevated Oil prices are fueling inflation concerns and reinforcing expectations that the Federal Reserve (Fed) could raise interest rates by the end of the year.