The push and pull continues for gold, as traders are still trying to make sense of what to do with the US-Iran situation.
That remains the question. The longer that the whole saga drags on, there’s also a negative undercurrent that looks set to run over gold prices in the bigger picture. Oil prices may have come off the boil but the fact remains that the Strait of Hormuz is closed.
In that lieu, the threat to inflation pressures remain amid higher input costs to business with supply chain disruptions also still persisting. As such, a more hawkish view to major central banks will stay as a big threat to the structural outlook for gold. But in the meantime, the precious metal will still be subject to US-Iran developments for the most part.