Gold steady as US-Iran deal hopes counter inflation fears
Gold held steady on Thursday, as rising hopes of a U.S.-Iran peace deal countered fears of inflation and higher-for-longer interest rates. Spot gold was down 0.2% at $4,534.69 per ounce, as of 0258 GMT. Bullion gained more than 1% on Wednesday after falling to its lowest level since March 30 earlier in the day. US gold futures for June delivery were steady at$4,536.70. US President Donald Trump said on Wednesday negotiations with Iran were in the final stages but warned of further attacks unless Iran agreed to a deal, adding that Washington could wait a few days to “get the right answers.” Sentiment improved “after Trump’s remarks stating that both the US and Iran are kind of reaching the final stages of peace deal agreement,” said Kelvin Wong, a senior market analyst at OANDA. However, “the overall trend of 10-year U.S. Treasury yield since the start of early March is still in a medium-term uptrend phase. Hence, gold bulls may not be so aggressive of beating up prices at this juncture,” he said.