Gold Prices Extend Gains as Dollar Weakens
Gold prices moved slightly higher during Asian trading on Thursday after recording a strong rally in the previous session. Optimism surrounding a possible U.S.-Iran peace agreement helped ease inflation concerns, while a weaker U.S. dollar further supported demand for bullion.
Spot gold rose 0.4% to $4,707 per ounce during early trading hours, while U.S. gold futures for June delivery also gained 0.4% to $4,713.
Gold Posts Biggest Daily Rally Since March
The precious metal surged nearly 3% on Wednesday, marking its strongest single-day performance since late March.
The rally came as oil prices plunged sharply amid expectations that tensions in the Middle East could begin easing.
Investor sentiment improved significantly after reports suggested the White House was nearing an agreement with Iran on a memorandum of understanding designed to help end the conflict.
Iran confirmed it was reviewing the proposal, while President Donald Trump stated that he believed Tehran was interested in reaching a deal.
Falling Oil Prices Ease Inflation Fears
The possibility of lower energy prices helped reduce concerns over a prolonged inflation shock across global markets.
As a result, U.S. Treasury yields and the dollar moved lower, increasing the appeal of non-yielding assets such as gold.
The U.S. Dollar Index slipped another 0.1% during Asian trading after falling 0.4% overnight, hovering near levels seen before the Iran conflict escalated.
Meanwhile, oil prices stabilized slightly on Thursday after plunging more than 7% the previous day as investors continued monitoring developments in U.S.-Iran negotiations.
Markets Await Key US Jobs Report
Investors are now turning their attention toward Friday’s U.S. nonfarm payrolls report for further insight into the Federal Reserve’s future interest-rate decisions.
Recent comments from Federal Reserve officials highlighted ongoing concerns that the Middle East conflict could still fuel inflation pressures and disrupt global supply chains despite signs of diplomatic progress.
Silver and Platinum Trade Mixed
Among other precious metals, Silver prices climbed 0.7% to $77.85 per ounce.
Meanwhile, Platinum traded mostly unchanged near $2,065 per ounce.
