LONDON: Gold prices rose on Wednesday to their highest in nearly two weeks, supported by a weaker dollar following US President Donald Trump’s statement that the war with Iran could wind down in weeks.
Spot gold rose 1 percent to $4,717.82 per ounce by 0712 GMT, its highest level since March 20. US gold futures for April delivery gained 1.4 percent to $4,744.30. The US dollar fell 0.4 percent, making bullion more affordable for holders of other currencies.
Gold fell more than 11 percent in March in its steepest monthly decline since October 2008 as elevated oil prices fueled inflation concerns and bets of a hawkish monetary policy response. “Market remains cautious about over-interpreting the de-escalation remark as a clean pivot. We’ve already seen multiple rounds where talks appeared constructive before stalling,” said Christopher Wong, a strategist at OCBC.
While gold is often used as a hedge against inflation and geopolitical risks, high interest rates make the non-yielding bullion less attractive among investors.
Spot silver fell 0.1 percent to $75 per ounce, platinum gained 1.4 percent to $1,975.74 and palladium was up 1 percent at $1,487.26.
