Gold prices remained stable close to a one-week high on Thursday, as investors adopted a cautious stance, anticipating additional information regarding a potential U.S.-Iran peace agreement. Spot gold remained steady at $4,688.16 per ounce, as of 0059, following an increase of approximately 3% on Wednesday, reaching its highest point since April 27. Gold futures in the U.S. for June delivery increased by 0.1%, reaching a price of $4,696.60. On Wednesday, Iran announced that it is assessing a U.S. peace proposal, which sources indicate would formally conclude the conflict but would not tackle the primary U.S. demands for Iran to cease its nuclear program and to reopen the Strait of Hormuz.
Equities ascended to unprecedented levels, whereas the dollar and oil prices saw a downturn on Wednesday following a report indicating that the United States and Iran are nearing the conclusion of an agreement to resolve their conflict. In April, U.S. private payrolls exhibited a more substantial increase than anticipated, as indicated by the national employment report published on Wednesday. Market participants are keenly awaiting the forthcoming monthly U.S. employment report, scheduled for release on Friday.
This report will act as an essential indicator of the U.S. economy’s robustness, impacting the Federal Reserve’s capacity to maintain its current monetary policy or whether a weakening labor market might rekindle discussions regarding potential rate cuts. Federal Reserve officials indicated on Wednesday that the ongoing U.S.-backed conflict with Iran is heightening the risk of a sustained inflationary shock, propelled by persistently elevated oil prices and rising apprehensions regarding disruptions in global supply chains.
The SPDR Gold Trust, recognized as the preeminent gold-backed exchange-traded fund globally, reported a 0.2% decrease in its holdings, bringing the total to 942.50 metric tons as of Tuesday. Spot silver experienced a decline of 0.2%, settling at $77.16 per ounce, while platinum recorded a modest increase of 0.1%, reaching $2,062.50. Palladium, conversely, saw a decline of 0.3%, concluding at $1,533.25.