Gold remained supported as investors weighed oil-driven inflation risks against optimism over a potential US–Iran peace deal. While easing geopolitical stress improved risk sentiment in broader markets, concerns over energy supply disruptions continued to provide a floor to bullion prices.
Markets continued to track developments in the West Asia closely. US President Donald Trump said negotiations with Iran were in the final stages, while warning of possible strikes if a deal was not reached. Iran, meanwhile, cautioned against renewed attacks, keeping geopolitical risk elevated and energy markets sensitive.
Oil prices and US Treasury yields eased on expectations of a possible diplomatic breakthrough, while global equity markets advanced. However, inflation concerns linked to energy volatility continued to support safe-haven demand for precious metals.Minutes from the US Federal Reserve’s April meeting indicated that policymakers remained cautious on inflation, with most members signalling that additional policy tightening could be required if price pressures persist above the 2% target. The labour market also remained resilient, reducing expectations for near-term rate cuts.
According to Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions, President of India Bullion and Jewellers Association Ltd., and Chairman at Jain International Trade Organisation, renewed US–Iran tensions have lifted inflation fears through higher oil prices and reduced expectations of rate cuts, with markets now even pricing in the possibility of a hike before year-end.
On the technical front, Kothari said gold may test the $4,350 an ounce level, with the broader uptrend intact above $4,300 an ounce. Silver, he added, could see further downside toward $71 and $67 an ounce after breaking key support levels.
–With Reuters inputs
