NEWS

Gold prices saw a modest rebound during Asian trading hours on Wednesday, clawing back some losses from the previous session. The precious metal found limited support from a softer U.S. dollar, although a newly brokered ceasefire between Iran and Israel reduced appetite for safe-haven assets.

Spot gold rose by 0.2%, reaching $3,329.93 per ounce, while August gold futures gained 0.3% to $3,344.70 as of 08:16 a.m. Saudi time.

Geopolitical Truce Dulls Gold’s Safe-Haven Shine

The yellow metal slumped over 1% on Tuesday after U.S. President Donald Trump announced a multi-phase truce between Israel and Iran, signaling a potential de-escalation of Middle Eastern tensions — a key driver of recent safe-haven flows into gold.

However, the relief was short-lived. Trump later voiced skepticism over the durability of the agreement, posting on social media that both sides had already shown signs of breaching commitments.

Weaker Dollar Offers Tailwind for Bullion

Despite easing geopolitical anxiety, the dollar's decline provided a lift for gold. The U.S. Dollar Index fell by 0.1%, hovering near a one-week low, which typically boosts dollar-denominated commodities by making them more attractive to non-U.S. buyers.

Market uncertainty also remained elevated after reports emerged that recent U.S. airstrikes failed to dismantle Iran’s nuclear infrastructure, delaying its progress rather than halting it.

Fed Policy Outlook Adds to Uncertainty

Federal Reserve Chair Jerome Powell, speaking before Congress, highlighted the uncertainty surrounding monetary policy, stating that “multiple paths remain open,” and the central bank will require more time to assess the inflationary impact of rising tariffs.

This indecision added a layer of unpredictability to the broader financial markets, helping to maintain some underlying support for precious metals.

Industrial Metals Gain Ground Amid Dollar Slide

Elsewhere in the metals complex:

Silver futures rose 0.5% to $35.928 per ounce.

Platinum futures held steady at $1,318.15 per ounce.

Benchmark copper contracts on the London Metal Exchange added 0.5%, hitting $9,723.35 per metric ton, while U.S. copper futures remained unchanged at $4.9015 per pound.

The weaker greenback made industrial metals more affordable for international buyers, although broader risk-on sentiment kept gains in check.

Conclusion

While the ceasefire has tempered immediate geopolitical fears, the gold market remains caught between opposing forces — a weakening dollar offering support, and easing tensions reducing demand for defensive assets. Investors are now watching for clarity on both the Fed’s next moves and any potential re-escalation in global hotspots.