Gold prices edged up again after two consecutive declining sessions, as expectations of a negotiated solution to the conflict between the US and Iran help ease inflation concerns.
The precious metal traded around $4,760 per ounce, partially recovering from a 0.6% decline in the previous two sessions. Although the US has begun to deploy sea blockades in the Strait of Hormuz, US President Donald Trump said Iranian officials have approached his administration with the desire to "seek an agreement".
In the opposite direction, Iranian President Masoud Pezeshkian also affirmed that Tehran is ready to continue peace talks within the framework of international law.
Oil prices, after rising sharply at the beginning of the session, cooled down but still maintained around 98 USD per barrel when Mr. Trump spoke at the White House. The USD and bond yields fell, thereby partially supporting gold prices.
However, high energy prices, along with the diễn biến of the US consumer price index, are causing investors to return to focusing on inflation risks. The currency market currently only appreciates below 20% of the possibility of the US Federal Reserve cutting interest rates in December, a disadvantage to gold – a non-performing asset.
Mr. Paras Gupta – Asia Portfolio Manager at Union Bancaire Privée, said weekend developments have increased the risk of a fragile ceasefire and potentially prolonged conflict. However, he believes that gold price fluctuations are currently "less extreme" than in the early stages of the war.
The bank said it is gradually increasing the proportion of gold in its customer portfolio, after previously decreasing from about 10% to 3%.
Since the conflict broke out at the end of February, gold prices have fallen by about 10%, as liquidity pressure in the early stages forced investors to sell gold to offset losses in other markets. Recently, gold prices have partially recovered as concerns about slowing economic growth begin to overwhelm high interest rate risks.
According to Mr. Daniel Hynes - Commodity Strategy Expert at ANZ Banking Group Ltd., this trend may continue to support gold prices in the near future, despite the correction in the first session of the week.
As of 10:03 am Vietnam time, spot gold price decreased by 0.53% to 4,773.19 USD per ounce. Silver price increased by 1.43% to 76.64 USD per ounce, platinum and palladium prices in today's trading session also increased.
