Gold extended a three-day rally after President Donald Trump said he expected the US to end the war with Iran within two to three weeks.
Bullion rose as much as 1.2% to top $4,700 an ounce, adding to a 3.5% jump in the previous session. Trump suggested that the US had largely accomplished its military goals and would leave it to other nations to resolve issues with the Strait of Hormuz. Earlier on Tuesday, Iranian state media quoted President Masoud Pezeshkian as saying the Islamic Republic was ready to end the war if its demands are met.
Despite the rebound in the past few days, bullion’s near-12% decline in March was its worst monthly performance since October 2008. The Middle East conflict, now in its fifth week, has upended global markets and choked supplies of energy and other goods, triggering concerns about a simultaneous spike in inflation and slowdown in economic growth.
Traders are also assessing comments from the Federal Reserve for clues to the central bank’s interest-rate policy. The bond market shifted focus from rising inflation to the war’s impact on economic growth, after Fed Chair Jerome Powell said longer-term inflation expectations remain anchored.
“Gold’s safe‑haven appeal tends to re‑emerge when the narrative shifts from inflation to growth risk,” said Yuxuan Tang, Asia head of rates and FX strategy at JPMorgan Private Bank. “We hold a high conviction that the Federal Reserve has limited bandwidth to raise rates this cycle” and will instead focus on the strained labor market, she said.
Spot gold gained 0.8% to $4,703.66 an ounce as of 8:38 a.m. Singapore time. Silver fell 0.5% to $74.82, while platinum and palladium rose. The Bloomberg Dollar Spot Index, a gauge of the US currency, slipped 0.2% after falling 0.6% on Tuesday.
This article was generated from an automated news agency feed without modifications to text.
