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What is the story about?
Gold maintained its value as US President Donald Trump seemed to dismiss the possibility of extended military engagement in the Middle East, alleviating inflationary worries that had been exacerbated by a recent surge in energy prices.
On COMEX, gold futures were up 0.48% at $4,435.60 an ounce, compared to the previous session's low of $4,426.10 an ounce. Silver futures rose 0.79% to $65.98 an ounce and hit a low of $66.17 an ounce.
This came to pass after a 1% rebound the previous day, which ended a three-day decline. The increase in oil prices moderated after Trump indicated that the recent assaults on Iran would likely be brief.
As per a Bloomberg report, this renewed conflict had reignited concerns about a protracted war that could drive inflation higher, posing a challenge for non-yielding bullion.
On Wednesday, the dollar experienced a slight decline after a significant rise in the yen, prompting traders to remain vigilant for any indications that authorities might take additional measures to bolster the Japanese currency. A weaker dollar can enhance gold's attractiveness for investors holding foreign currencies.
Another report said that John Williams, President of the Federal Reserve Bank of New York, stated that there are signs inflation is continuing to decrease as the effects of tariffs diminish, while rising energy costs are not permeating other sectors.
This has moderated expectations for an interest rate increase, a sentiment further reinforced by data indicating that US companies added jobs at a slower rate in August.
This followed a hawkish address by Fed Chairman Kevin Warsh on Friday, which heightened expectations that the US central bank may need to raise rates to control inflation during its upcoming meeting in two weeks.
Also Read: Snowflake shares jump 22% in extended trade after strong Q2 results, guidance raise
On COMEX, gold futures were up 0.48% at $4,435.60 an ounce, compared to the previous session's low of $4,426.10 an ounce. Silver futures rose 0.79% to $65.98 an ounce and hit a low of $66.17 an ounce.
This came to pass after a 1% rebound the previous day, which ended a three-day decline. The increase in oil prices moderated after Trump indicated that the recent assaults on Iran would likely be brief.
As per a Bloomberg report, this renewed conflict had reignited concerns about a protracted war that could drive inflation higher, posing a challenge for non-yielding bullion.
On Wednesday, the dollar experienced a slight decline after a significant rise in the yen, prompting traders to remain vigilant for any indications that authorities might take additional measures to bolster the Japanese currency. A weaker dollar can enhance gold's attractiveness for investors holding foreign currencies.
Another report said that John Williams, President of the Federal Reserve Bank of New York, stated that there are signs inflation is continuing to decrease as the effects of tariffs diminish, while rising energy costs are not permeating other sectors.
This has moderated expectations for an interest rate increase, a sentiment further reinforced by data indicating that US companies added jobs at a slower rate in August.
This followed a hawkish address by Fed Chairman Kevin Warsh on Friday, which heightened expectations that the US central bank may need to raise rates to control inflation during its upcoming meeting in two weeks.
Also Read: Snowflake shares jump 22% in extended trade after strong Q2 results, guidance raise
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