Gold Hovers Around $4,650, Silver Trades at $73
Gold steadied around $4,650 per ounce on Tuesday after falling for two straight sessions, as investors focused on President Donald Trump’s threat to target Iranian civilian infrastructure unless his demands are met.
Amid lingering geoeconomic concerns stemming from Middle East unrest, silver is little changed, slightly above $73.
In quiet turnover, the dollar has given up its early gains, and as the North American session is about to begin, the greenback is lower against all the G10 currencies and emerging market currencies.
US index futures are trading firmer, and May WTI is off around 1% but is still near $110. It still seems binary. If the hopes are dashed, risk will come off as the conflict could dramatically escalate.
Trump warned he could strike Iranian power plants and bridges if his conditions are not met by Tuesday, 8 p.m. Eastern Time, including the reopening of the Strait of Hormuz.
The threat overshadowed signs that the US and Iran may be moving closer to a ceasefire agreement through mediators.
Gold remains down about 15% since the conflict began, as surging energy prices tied to the Iran war fueled inflation fears and increased the likelihood that central banks will delay cutting interest rates or even raise them.
Markets now expect the Federal Reserve to keep rates unchanged through the rest of the year, compared with earlier projections of two rate cuts. Oil Prices Climb Ahead of Deadline to Reopen Hormuz
