Gold steady as markets await Powell's comments on Iran war impact
- Spot gold was up 0.1% at $4,597.07 per ounce
- US gold futures for June delivery were steady at $4,610.20
Gold was largely steady in choppy trade on Wednesday as investors awaited US Federal Reserve Chair Jerome Powell’s comments to gauge the impact of the Iran war on the economy amid stalled peace talks.
Spot gold was up 0.1% at $4,597.07 per ounce, as of 0243 GMT, after falling to its lowest level since April 2 in the previous session.
US gold futures for June delivery were steady at $4,610.20.
Gold remained steady “as markets look ahead to the FOMC (Federal Open Market Committee) meeting… Much of the market’s resilience since last April’s tariff-driven panic has been built on the assumption that the Fed is ready to step in if conditions deteriorate.
If it signals a high bar for such action, gold may extend lower,“ said Ilya Spivak, head of global macro at Tastylive.
Investors expect the Fed to hold interest rates steady at the end of its two-day meeting later in the day.
Efforts to end the Iran conflict were at an impasse with US President Donald Trump unhappy with the latest proposal from Tehran, which he said had informed the US it was in a “state of collapse” and was figuring out its leadership situation.
Meanwhile, Brent crude oil remained above $110 a barrel on reports that the US will extend its blockade of Iranian ports. Higher crude prices add to inflationary pressures, increasing the likelihood of higher interest rates.
While gold is traditionally seen as a hedge against inflation, high interest rates weigh on its appeal as a non-yielding asset.
Investors will also be focusing on other central bank decisions this week, including those from the European Central Bank, the Bank of England, and the Bank of Canada.
“We expect gold’s price action to be fragile in the near term, but continue to see prices gaining traction in the coming months to retest record highs as the structural drivers (geopolitical tensions, tariffs, and trade uncertainty) behind the rally remain intact,” Standard Chartered said in a note.
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Spot silver rose 0.8% to $73.64 per ounce, platinum fell 0.4% to $1,930, and palladium was down 0.4% at $1,453.91.‑Reuters
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