Gold steadies as uncertainty surrounds progress in US-Iran talks

[SINGAPORE] Gold was little changed as uncertainty persisted over progress in US-Iran talks to end the war that’s roiled global markets.

Bullion traded near US$4,470 an ounce on Friday (Jun 5), having advanced nearly 1 per cent in the previous session. US President Donald Trump said that peace negotiations were in the “final” stages, while Iranian Foreign Minister Abbas Araghchi said earlier that “no tangible progress has been achieved”.

Teheran-backed Hizbollah meanwhile rejected a Washington-brokered truce between Israel and Lebanon, casting doubt over Trump’s attempts to end regional hostilities. This week has seen the most serious clashes in the Middle East since a ceasefire was agreed in early April.

The war’s protracted disruption to energy flows via the Strait of Hormuz has driven oil prices higher and raised concerns around global inflation, making central banks more likely to keep interest rates steady or even raise them, a headwind for precious metals, which do not pay interest.

Gold has lost about 15 per cent since the start of the conflict in late February and has traded in a narrow band in the last few weeks.

Spot gold edged down 0.1 per cent to US$4,470.10 an ounce as at 7.04 am Singapore time. Silver rose 0.1 per cent to US$73.95 an ounce. Platinum fell marginally, while palladium ticked up. The Bloomberg Dollar Spot Index was flat after ending the previous session 0.1 per cent lower. BLOOMBERG