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Despite the increasing tension between America and Iran, gold prices are seeing stability. Investors are currently keeping an eye on Donald Trump’s plan regarding the Strait of Hormuz and the ongoing talks between the two countries. Amidst the surge in energy prices and uncertainty regarding interest rates, Gold has adopted a stable trend after the recent fall, due to which the market remains cautious.
Gold prices are showing stability amid the ongoing tension between America and Iran. After the fall of the last two weeks, gold is now trading in a limited range. Investors are especially eyeing Donald Trump’s plan, in which he has said that America will help in taking some ships out of the Strait of Hormuz safely.
current price of gold
The price of gold remains around $4,620 per ounce. Trump also indicated that negotiations with Iran were moving in a positive direction, although he also said that Iran’s latest peace proposal may not go far enough. This uncertainty has created an atmosphere of caution in the market. Due to the Iran-America conflict, crude oil prices have remained high, due to which inflationary pressure has increased. In such a situation, the expectations of reduction in interest rates by the central banks have reduced, which is considered a negative sign for gold because gold does not give interest.
Nevertheless, investors’ confidence in gold remains high in the long term. According to the World Gold Council, in the first quarter, central banks have made the fastest purchase of gold in more than a year. Apart from this, private institutions are also continuously making purchases. Talking about other metals, a slight rise has been seen in silver, platinum and palladium. There has been a slight decline in the dollar index. In the coming days, investors will keep an eye on the US Treasury’s borrowing plan, Federal Reserve statements and employment data, which can decide the direction of the market.
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