Gold prices surged nearly 2% on April 17, approaching $4,900 per ounce, driven by easing tensions in the Middle East and rising expectations of a Federal Reserve rate cut. Iranian Foreign Minister Abbas Araqchi confirmed the Strait of Hormuz will remain open during a ceasefire, alleviating concerns over energy supply disruptions and contributing to a decline in oil prices and the U.S. dollar.
Market analysts highlight that the drop in oil prices reduces inflationary pressures, boosting the likelihood of a Fed rate cut, with traders estimating a 60% chance of a cut by year-end. Institutional perspectives suggest that a weaker dollar and potential lower interest rates are bolstering gold, with prices possibly reaching $5,000 soon. Meanwhile, policy uncertainty has led some Indian banks to halt gold imports, stranding several tons at customs and affecting short-term supply dynamics.
Gold Nears $4,900 as Middle East Tensions Ease and Fed Rate Cut Hopes Rise
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
