Gold Prices Rise as Dollar Weakens and Iran Talks Remain in Focus
Gold prices moved higher in Asian trading on Thursday, supported by continued weakness in the U.S. dollar. Investor attention remained focused on potential ceasefire talks between the United States and Iran, which are shaping overall market sentiment.
The precious metal stayed close to a near one-month high reached earlier in the week, as expectations of de-escalation in the Middle East reduced inflation concerns while boosting broader risk appetite.
Gold (XAU/USD) rose 0.9% to $4,835.09 per ounce, while gold futures gained 0.7% to $4,857.05/oz.
Precious Metals Extend Gains
Other precious metals also advanced, reflecting improved sentiment across commodity markets:
- Silver climbed 2.4% to $80.81/oz
- Platinum increased 1.6% to $2,147.21/oz
Both metals remained close to their highest levels in about a month.
Weak Dollar Supports Gold Rally
Gold’s upward move was largely driven by sustained weakness in the dollar, which extended its losing streak to nine consecutive sessions and hovered near six-week lows.
The dollar also came under pressure from softer U.S. producer inflation data, further reducing demand for the currency as a safe haven.
Geopolitical Developments Keep Markets on Edge
Donald Trump signaled earlier this week that extended negotiations with Iran could take place soon, suggesting that a resolution to the conflict may be approaching. He also noted that separate talks between Israel and Lebanon were scheduled to take place in Washington.
However, tensions remain elevated. Reports indicate increased U.S. military presence in the region and the implementation of a naval blockade against Iran.
Despite these developments, the current ceasefire appears to be holding, with markets closely watching for further diplomatic progress ahead of its expected expiration on April 21.
Copper Gains on Strong China GDP Data
Industrial metals also moved higher, with copper benefiting from stronger-than-expected economic data from China.
Copper futures on the London Metal Exchange rose 0.5% to $13,350.33 per tonne, while COMEX copper futures gained 0.8% to $6.1250 per pound.
China’s economy grew 5% in the first quarter, exceeding expectations and signaling strong demand from the world’s largest copper importer.
China Demand Supports Copper Outlook
The growth was largely driven by robust exports, which are expected to continue supporting demand for industrial metals in the coming months.
However, China’s economy still faces potential challenges from the Iran conflict. Rising fuel costs could weigh on domestic consumption, while disruptions in global shipping may impact export activity.
