Gold prices inched higher in Asian trading on Wednesday, recovering slightly from steep losses the previous day. A softer U.S. dollar lent support, although risk appetite returned as the fragile ceasefire between Israel and Iran appeared to hold.
- Spot gold rose 0.2% to $3,329.93/oz
- Gold futures (August) gained 0.3% to $3,344.70/oz (as of 06:16 GMT)
Gold had slumped more than 1% on Tuesday after President Donald Trump announced a multi-stage ceasefire between the two Middle Eastern rivals. Though Trump later criticized both sides for violating the deal, markets are cautiously optimistic the worst of the conflict may be over.
Gold Pressured by Truce, Buoyed by Dollar Weakness
While gold’s traditional safe-haven appeal was dampened by the truce, lingering uncertainty and a weaker U.S. dollar helped stabilize prices. The Dollar Index slipped 0.1% in Asian trading, hovering near a one-week low.
Further supporting gold was speculation that recent U.S. strikes failed to neutralize Iran’s nuclear capabilities—raising the risk of renewed tensions in the future.
Federal Reserve Chair Jerome Powell added to market caution, telling Congress that the Fed remains data-dependent as it monitors the inflationary effects of U.S. tariffs.
Other Metals Gain on Softer Dollar
Broader metals saw modest gains:
- Silver futures climbed 0.5% to $35.93/oz
- Platinum futures held steady at $1,318.15/oz
- LME copper rose 0.5% to $9,723.35/ton
- U.S. copper futures were flat at $4.9015/lb
A softer dollar made commodities more attractive to international buyers, but the broader risk-on sentiment limited upside for precious metals.
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