Washington, DC – Gold prices rose sharply in global trading on Thursday, supported by lower crude oil prices and a weaker US dollar. This surge comes as investors reassess the geopolitical landscape and the prospects for a comprehensive diplomatic solution to the ongoing US-Israeli conflict with Iran in the Middle East.
Gains in spot and futures contracts for the yellow metal
In trading, spot gold rose 0.4 percent to $4,450.16 an ounce by 00:51 GMT. U.S. gold futures for August delivery also gained 0.2 percent, settling at $4,477.
This rise coincided with a decline in the US dollar against a basket of major currencies, making the precious yellow metal, priced in the greenback, less expensive and more attractive to holders of other currencies in global markets. Financial analysts say, “Recent political developments in Washington and the Middle East have prompted investors to reallocate safe havens, amid widespread anticipation of the future of the regional conflict.”
Political optimism and a drop in oil markets
These movements in the financial markets were driven by a significant political development: the Trump administration announced on Wednesday that Israel and Lebanon had agreed to an immediate ceasefire to end hostilities between them. This boosted hopes for a broader peace agreement that would end the conflict with Tehran. Meanwhile, the US House of Representatives passed a resolution on Wednesday to prevent Trump from continuing the war against Iran, reflecting growing concern over the three-month-long conflict.
As a result of this atmosphere, oil prices fell in early trading on Thursday, after the ceasefire boosted hopes for de-escalation. Among other precious metals, silver rose 0.8 percent to $73.26 an ounce in spot trading. Platinum also gained 0.2 percent to $1,863.25, while palladium climbed 0.5 percent to $1,307.67.
