Business Recorder
Gold inched lower on Monday , pressured by a stronger dollar and rising oil prices, as investors awaited U.S. President Donald Trump’s decision on a proposed deal to extend the ceasefire with Iran. Fundamentals Spot gold was down 0.2% at $4,527.36 per ounce, as of 0156 GMT, after rising to a two-week high in the previous session. US gold futures fell 0.8% to $4,558.10. US President Donald Trump said on Friday he would soon decide on a proposed deal to extend the ceasefire with Iran, though the two countries still appeared to differ on significant issues that have been central to the conflict. Israeli Prime Minister Benjamin Netanyahu has ordered troops to move further into Lebanon in the battle against the Iranian-backed Hezbollah militant group, he said on Sunday, despite a ceasefire announced more than six weeks ago. Oil prices rose more than 2% in early trading on Monday, stoking inflation concerns. Federal Reserve Vice Chair for Supervision Michelle Bowman said on Friday the Middle East war’s impact on the economy, while still being measured, could lead to persistent rises in inflation that might require tighter monetary policy. Federal Reserve Bank of Philadelphia President Anna Paulson said on Friday “mildly restrictive” monetary policy is “well positioned” for an uncertain outlook where inflation pressures remain too high. Gold demand in India remained subdued last week due to higher prices and import duties, while premiums in top consumer China narrowed amid cautious sentiment. Gold speculators raised net long positions by 2,544 contracts to 96,931 in the week to May 26. Spot silver rose 0.4% to $75.54 per ounce, platinum gained 1% to $1,935.65, and palladium rose 1.3% to $1,371.24.
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