Gold prices maintained their upward momentum amid expectations that the US and Iran are promoting negotiated solutions to end the conflict, thereby helping to reduce inflationary pressure from the energy supply shock.
Precious metals traded around 4,840 USD per ounce in the first session of the day, after increasing by 2.1% in the previous session.
According to sources, Washington and Tehran are preparing for the second round of peace talks in the coming days. US President Donald Trump also said that negotiations could resume "within two days", according to the New York Post.
Oil prices went sideways in the middle of the week, while US stocks rose sharply and the USD fell 0.3%, thereby supporting gold prices - an asset valued in the greenback.
Notably, the recent cooling of energy prices has helped reduce inflationary pressure - a factor that has put pressure on gold since the conflict broke out more than six weeks ago.
Previously, concerns about rising inflation had led the market to bet that central banks would maintain high interest rates for a longer period, and may even continue to raise interest rates - a disadvantage to gold because this is a non-interest-generating asset.
Since the beginning of the conflict, gold prices have fallen by about 8%, as liquidity pressure in the early stages forced investors to sell to compensate for losses in other markets.
Standard Chartered Plc experts believe that, in addition to short-term liquidity demand, gold prices are likely to gradually recover in the coming months in the context of geopolitical risks remaining high.
However, the Middle East situation still contains many instabilities, especially tensions surrounding the Strait of Hormuz - a strategic transport route connecting the Persian Gulf with the global market.
The US continues to promote the deployment of naval blockades to limit Iran's oil exports, while Tehran is considering temporarily suspending shipments in the short term.
Even when the conflict ends, the risk of energy supply disruption remains, as many important infrastructures in the Gulf region have been damaged after missile and drone attacks.
As of 9:06 am (Vietnam time), spot gold price increased by 2.23% to 4,849.06 USD/ounce. Silver price increased slightly by 1.6% to 80.96 USD/ounce, after increasing by more than 5% in the previous session. Meanwhile, platinum and palladium also decreased slightly. The index measuring the strength of the USD is almost flat.
