Gold rises as dollar softens, lower oil prices ease inflation fears
Gold rebounded on Tuesday from a near one-week low hit the day before, on a softer dollar and as oil prices fell on hopes of further U.S.-Iran peace talks, easing inflation fears.
Spot gold was up 0.7% at $4,769.77 per ounce, as of 0509 GMT, after hitting its lowest level since April 7 in the previous session. U.S. gold futures for June delivery rose 0.5% to $4,791.70.
Oil prices fell below $100 a barrel as signs of potential U.S.-Iran dialogue to end their war eased concerns about supply risks stemming from the U.S. blockade of the Strait of Hormuz.
Higher crude prices feed into inflation by raising transportation and production costs. While inflation typically boosts gold's appeal as a hedge, elevated interest rates weigh on the non-yielding metal's demand.
Meanwhile, the U.S. military began a blockade of Iran's ports on Monday, President Donald Trump said, and Tehran threatened to retaliate against its Gulf neighbours' ports after weekend talks in Islamabad on ending the war broke down.
Additionally, the U.S. dollar hovered near its lowest level in more than a month, making gold denominated in the greenback more affordable for holders of other currencies.
Among other metals, spot silver rose 2% to $77.05 per ounce, platinum gained 0.4% to $2,077.72, while palladium was down 0.1% at $1,571.65.
Reuters
Gold rebounded on Tuesday from a near one-week low hit the day before, on a softer dollar and as oil prices fell on hopes of further U.S.-Iran peace talks, easing inflation fears.
Spot gold was up 0.7% at $4,769.77 per ounce, as of 0509 GMT, after hitting its lowest level since April 7 in the previous session. U.S. gold futures for June delivery rose 0.5% to $4,791.70.
Oil prices fell below $100 a barrel as signs of potential U.S.-Iran dialogue to end their war eased concerns about supply risks stemming from the U.S. blockade of the Strait of Hormuz.
Higher crude prices feed into inflation by raising transportation and production costs. While inflation typically boosts gold's appeal as a hedge, elevated interest rates weigh on the non-yielding metal's demand.
Meanwhile, the U.S. military began a blockade of Iran's ports on Monday, President Donald Trump said, and Tehran threatened to retaliate against its Gulf neighbours' ports after weekend talks in Islamabad on ending the war broke down.
Additionally, the U.S. dollar hovered near its lowest level in more than a month, making gold denominated in the greenback more affordable for holders of other currencies.
Among other metals, spot silver rose 2% to $77.05 per ounce, platinum gained 0.4% to $2,077.72, while palladium was down 0.1% at $1,571.65.
Reuters
Gold rebounded on Tuesday from a near one-week low hit the day before, on a softer dollar and as oil prices fell on hopes of further U.S.-Iran peace talks, easing inflation fears.
Spot gold was up 0.7% at $4,769.77 per ounce, as of 0509 GMT, after hitting its lowest level since April 7 in the previous session. U.S. gold futures for June delivery rose 0.5% to $4,791.70.
Oil prices fell below $100 a barrel as signs of potential U.S.-Iran dialogue to end their war eased concerns about supply risks stemming from the U.S. blockade of the Strait of Hormuz.
Higher crude prices feed into inflation by raising transportation and production costs. While inflation typically boosts gold's appeal as a hedge, elevated interest rates weigh on the non-yielding metal's demand.
Meanwhile, the U.S. military began a blockade of Iran's ports on Monday, President Donald Trump said, and Tehran threatened to retaliate against its Gulf neighbours' ports after weekend talks in Islamabad on ending the war broke down.
Additionally, the U.S. dollar hovered near its lowest level in more than a month, making gold denominated in the greenback more affordable for holders of other currencies.
Among other metals, spot silver rose 2% to $77.05 per ounce, platinum gained 0.4% to $2,077.72, while palladium was down 0.1% at $1,571.65.
Reuters
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Gold rises as dollar softens, lower oil prices ease inflation fears
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