Gold prices fell slightly in Thursday's trading session as US bond yields and the USD remained high, as the market continued to monitor signals related to the possibility of cooling down the US-Iran conflict.
As of 4:11 PM Vietnam time, spot gold prices rose slightly by 0.11% to 4,537.15 USD/ounce. Previously, this precious metal had increased by more than 1% in Wednesday's session after falling to its lowest level since March 30. US gold futures for June delivery fell slightly by 0.1% to 4,528.90 USD/ounce.
The USD rose about 0.1%, making gold more expensive for investors holding other currencies.
According to Ms. Soni Kumari - An analyst at ANZ, concerns about inflation, increased bond yields and a strong USD continue to be factors putting pressure on the gold market.
These factors are likely to continue to dominate the market until there is more clarity about the timing and diễn biến of the conflict," she said.
Since the war broke out at the end of February, gold prices have now fallen by more than 14% as the market increasingly expects interest rates to remain high longer.
In the latest developments, Iran said it is considering a new stance from Washington regarding ending the conflict, after US President Donald Trump signaled his willingness to wait a few more days to receive a "suitable answer" from Tehran.
The yield of 10-year US Treasury bonds increased by 1 basis point to 4.578%, returning to the upward trend after three consecutive previous declining sessions.
According to CME Group's FedWatch tool, the market currently assesses the probability of the Fed raising interest rates by another 25 basis points in December at around 39%.
Mr. Kelvin Wong - Senior Market Analyst at OANDA said that the medium-term trend of US bond yields is still rising since the beginning of March, making buying power on the gold market not really strong again at the present time.
The minutes of the Fed's April policy meeting also show that many officials believe that further policy tightening may be necessary if inflation persists above the 2% target.
According to Mr. Wong, in the short term, gold prices may continue to fluctuate weakly, with a resistance zone around 4,645 USD/ounce and a support zone near 4,456 USD/ounce.
On other precious metals markets, spot silver prices fell 1.1% to $75.19/ounce. Platinum prices fell 0.9% to $1,933.13/ounce, and palladium fell 0.8% to $1,359.20/ounce.
