Gold, silver rally on weaker dollar & lower oil as US-Iran talks stay in focus
Precious metals draw safe-haven and inflation-relief bids as peace negotiation hopes weigh on crude, soften the greenback, and ease rate-hike fears globally.
Gold and silver pushed higher on Monday as a softening US dollar and retreating crude oil prices bolstered appetite for precious metals, with investors closely tracking developments in US-Iran negotiations that have kept global markets on edge for weeks.
Spot gold rose more than 1% to $4,560.09 per ounce in early trade, while US gold futures for June gained 0.9% to $4,562.10. The dollar’s decline made greenback-priced bullion more affordable for holders of other currencies, amplifying the upside move.
The week prior witnessed sharp profit booking in crude oil, with prices correcting nearly 7% from elevated levels, easing some inflation concerns globally. Meanwhile, silver ended last week down nearly 2% at $76.20 per ounce on Comex, though analysts expect the metal to retain a positive bias given persistent geopolitical uncertainty and still-elevated energy costs.
Looking ahead, analysts expect gold to remain in a consolidative range as markets await further clarity from the US-Iran negotiating table. Silver, they say, is likely to hold a positive bias given that geopolitical uncertainty and energy price volatility have not fully resolved. Investors will also track upcoming US PCE inflation figures, GDP data, consumer confidence readings, and housing numbers for clues on Federal Reserve policy.
Gold and silver are priced in US dollars globally. When the dollar weakens, it takes fewer units of other currencies to buy the same amount of precious metals, making them cheaper for international investors and driving up demand and prices.
Market snapshot: Spot gold rose 1.1% to $4,560.09 per ounce, with US gold futures for June gaining 0.9% to $4,562.10, as the dollar weakened and made greenback-priced bullion more affordable for holders of other currencies.
The Iran connection: The week witnessed sharp profit booking in crude oil, with prices correcting nearly 7% from higher levels, easing some inflation concerns globally. Comex gold futures ended the prior week at $4,523.2 per ounce, while silver fell nearly 2% to close at $76.20 per ounce.
Outlook: Gold prices are likely to remain range-bound in the coming week as traders await more clarity on the evolving US-Iran negotiations, while silver is expected to retain a positive bias amid persistent geopolitical uncertainty and elevated energy rates. Investors will also be watching US PCE inflation, GDP numbers, and consumer confidence data for Federal Reserve policy signals.
