Gold steadied as investors watched for clearer signs that Israel-Iran tensions won’t spill over into war again, and for fresh signals regarding the Federal Reserve’s rate-cut plans.
Bullion traded near $3,335 an ounce early in Asia after closing slightly higher on Wednesday. President Donald Trump said that US and Iranian officials will meet next week and Israel’s conflict with Tehran was effectively over, but still warned fighting “could maybe start soon.”
Fed Chair Jerome Powell said the central bank was still struggling to determine the impact of Trump’s tariff agenda on consumer prices. Signs that inflation remains muted could encourage the central bank to implement monetary easing sooner than expected, which would benefit non-interest-bearing gold.
Trump — frustrated by the Fed’s take-it-slow approach to cutting rates — is considering naming a replacement for Powell by September or October, the Wall Street Journal reported.
The blistering rally that’s seen gold prices soar more than a quarter this year has sputtered out in the last couple of months, as trade tensions eased and on signs investors are hesitant to enter at these elevated levels. Solid central bank buying and expectations for rate cuts have also supported bullion, which is trading about $160 short of its record high reached in April.
Gold was up 0.1% to $3,334.95 an ounce at 8:10 a.m. Singapore time, after closing 0.3% higher on Wednesday. The Bloomberg Dollar Spot Index declined 0.2%. Silver, palladium and platinum rose.