Gold Steadies Near $4,000 as Traders Watch US-Iran Talks, Fed Path
Summary
- International gold prices traded in a narrow range as markets watched US-Iran peace talks and US economic data.
- Gold prices have fallen about 24% since the Middle East conflict began, dropping below the 200-day moving average, while the prospect of additional Fed rate hikes added pressure.
- With the US economy remaining resilient, markets see room for the Fed to leave rates unchanged for now while monitoring inflation.
Forecast Trend Report by Period
Gold traded in a narrow range as investors monitored US-Iran peace talks and looked to US economic data for clues on the Federal Reserve's rate path.
Spot gold traded near $4,000 an ounce on June 30, according to Bloomberg data. The metal has fallen about 2% over the past two sessions, though the decline has started to stabilize.
President Donald Trump's envoys traveled to Doha, Qatar, for negotiations with Iran. Qatar, which is mediating the talks, said no direct meeting between the two sides is scheduled, dampening expectations for a major breakthrough in the near term.
Ahead of the negotiations, Iran reaffirmed that it would continue controlling shipping through the Strait of Hormuz. The waterway is a key maritime route for about 20% of global crude oil and liquefied natural gas shipments.
Gold has dropped about 24% since the Middle East conflict began in late February and has fallen below its 200-day moving average, a long-term trend indicator. Cooling oil prices after an early war-driven surge have also weighed on gold by reviving the prospect of additional Fed rate hikes.
Still, the US economy has remained resilient. May job openings were little changed, and the labor market stayed stable. That has given the Fed room to leave rates unchanged for now while monitoring inflation.
As of 7:55 a.m. in Singapore, spot gold was at $4,006.73 an ounce. Silver fell 0.2%, platinum was flat, and palladium edged lower. The Bloomberg Dollar Spot Index rose 0.1%.
