Gold Price Today: Spot Gold Rises to Near One-Month High as Dollar Weakens

TLDR

• Spot gold rose 0.4% to $4,808.42/oz, staying near a one-month high
• A weaker U.S. dollar is making gold more attractive to overseas buyers
• The U.S. and Iran have agreed in principle to hold a second round of talks
• A fragile ceasefire between the U.S. and Iran is set to expire on April 21
• Oil has stabilized below $100/barrel but remains well above pre-war levels

Gold prices moved higher on Thursday, supported by a softer U.S. dollar and cautious optimism around ongoing ceasefire negotiations between the United States and Iran.

Spot gold gained 0.4% to $4,808.42 an ounce. Gold futures added 0.1% to $4,828.71 per ounce as of early Thursday morning ET.

Other precious metals also moved up. Spot silver rose 0.6% to $79.41 per ounce, while spot platinum climbed 1.2% to $2,138.32 per ounce.

The gains came as gold held close to a near one-month high reached on Wednesday. Hope for a continued de-escalation in the Iran conflict has helped ease some inflation fears and lifted broader risk appetite.

Iran Ceasefire Talks

The U.S. and Iran have agreed in principle to hold a new round of talks, according to the Wall Street Journal. An initial round of negotiations took place last weekend in Pakistan but did not produce an immediate deal.

Officials familiar with the matter told the Journal that neither side has set a time or location for the next meeting. The current ceasefire between the two countries is due to expire on April 21.

President Donald Trump also said on Thursday that talks between Israel and Lebanon are expected to take place. Israel confirmed the discussions, though the Associated Press reported Lebanon said it had not been informed.

Tensions in the region have not fully eased. Iran’s top military commander warned the U.S. to stop a naval blockade of Iranian ports. U.S. Central Command said no Iranian-linked ships or oil tankers have broken through the blockade.

Oil and Rate Expectations

Oil prices have steadied below $100 a barrel, but remain well above where they were before the conflict started. Crude surged to around $120 a barrel when the war broke out in late February, raising concerns about inflation around the world.

Those concerns led to growing bets that central banks, including the Federal Reserve, might raise interest rates. Higher rates tend to reduce the appeal of gold, which pays no yield.

But as peace talks have progressed, those rate hike bets have eased. Spot gold has gained 0.9% over the past week.

The U.S. dollar has also weakened after spending much of March as a safe-haven currency. Investors had viewed the U.S. as insulated from oil supply disruptions in the Strait of Hormuz, given its status as a major energy exporter.

A softer dollar tends to make gold cheaper for buyers using other currencies, which can support demand. The next round of U.S.-Iran talks has not yet been scheduled, with the April 21 ceasefire deadline approaching.

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