Gold Rises as Oil Declines and Trump Signals Iran Talks
Gold prices rose on Tuesday after oil prices lost more than 9% over the previous four sessions, easing some concerns about inflation and the need for more interest rate hikes by the Federal Reserve.
The precious metal was also supported by a weaker dollar and renewed hopes of diplomacy between the United States and Iran, although Federal Reserve officials remain divided on the path of interest rates.
At 00:04 AM, XAU/USD rose 0.4% to $4,359.40 per ounce, while gold futures increased by 0.3% to $4,396.85.
Gold recovered from its decline on Monday after the metal posted its biggest daily drop in a week. This rebound followed the stabilization of oil prices after they fell more than 9% over the previous four sessions, which reduced some of the inflationary pressures that had been building in the markets.
The drop in energy prices also helped reduce expectations for further monetary policy tightening by the Federal Reserve. Gold tends to benefit when interest rate expectations fall, as the metal does not yield income.
These movements also followed renewed diplomatic signals regarding the US-Iran conflict. President Donald Trump is scheduled to address the United Nations General Assembly in New York later on Tuesday, and he has indicated his openness to meeting with Iranian President Masoud Pezeshkian on the sidelines of the meetings.
This renewed diplomatic focus comes after months of conflict and disruption to energy flows in the Middle East. Any improvement in the outlook for oil supplies could further alleviate inflation concerns.
المصدر: Open Sources
