Gold prices surge $58 to $4110 as geopolitical tensions ease, though Fed policy uncertainty caps gains.
Gold prices climbed $58 to $4110 as reports of a halt in Iran hostilities reduced safe-haven demand for the dollar and eased energy price pressures. The metal has hovered near $3900 for a month, resisting a 13-day US bombing campaign in Iran without breaking lower, signaling resilience amid shifting central bank demand, particularly from China.
Market focus remains on the Federal Reserve’s upcoming meeting, where a 33% implied probability of a rate hike could weigh on gold initially. However, any hawkish pivot may set the stage for future rate cuts, potentially supporting longer-term bullish sentiment. Crude oil’s 30% rise during the bombing campaign has also complicated negotiations, giving Iran leverage in talks.
Traders are watching for signs of renewed Asian buying, which could further underpin prices. While optimism persists, the fragile truce and unresolved geopolitical risks leave gold’s trajectory uncertain.