In Asian markets on Wednesday, gold prices edged up modestly, bouncing back after a steep drop the day before. The recent easing of geopolitical tensions between Israel and Iran, combined with a weaker U.S. dollar, provided some support, although renewed investor risk appetite limited gains.
- Spot gold increased by 0.2%, reaching $3,329.93 per ounce.
- August gold futures climbed 0.3% to $3,344.70 per ounce as of early trading (06:16 GMT).
Gold had fallen more than 1% on Tuesday following President Donald Trump’s announcement of a phased ceasefire between Israel and Iran. Despite subsequent criticisms from Trump regarding breaches of the truce, market participants are cautiously hopeful that the most intense period of conflict might be behind them.
Ceasefire Weighs on Safe-Haven Demand, Dollar Weakness Provides Support
The truce dampened gold’s appeal as a safe-haven asset, yet ongoing uncertainty and a softer U.S. dollar helped keep prices steady. The Dollar Index dipped 0.1% in Asian hours, hovering close to its lowest level in a week.
Additional support came from concerns that recent U.S. military actions may not have fully curtailed Iran’s nuclear ambitions, suggesting the possibility of future flare-ups.
Federal Reserve Chair Jerome Powell’s cautious remarks before Congress further tempered market sentiment. Powell emphasized that the Fed’s policy decisions remain highly dependent on incoming data, especially regarding inflation pressures linked to U.S. tariffs.
Other Metals See Moderate Gains Amid Dollar Softness
Other key metals experienced slight advances alongside gold:
- Silver futures rose 0.5% to $35.93 per ounce.
- Platinum prices remained steady at $1,318.15 per ounce.
- Copper on the London Metal Exchange gained 0.5%, closing at $9,723.35 per ton.
- U.S. copper futures were unchanged at $4.9015 per pound.
The weakening dollar generally enhances the appeal of commodities for international buyers, but the overall increased willingness to take risks has limited the upside momentum for precious metals.