(Bloomberg) — Gold jumped as signs the US and Iran are closing in on a deal that would reopen the Strait of Hormuz tempered inflation concerns.<\/p>\n
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Bullion rose as much as 1.6% to around $4,580 an ounce, erasing a moderate loss from last week. Negotiations on the precise language of the deal were ongoing and it may take several days for both sides to get final approval, US officials told reporters on Sunday. President Donald Trump said on social media he won\u2019t \u201crush\u201d into an agreement.<\/p>\n
Earlier, US Secretary of State Marco Rubio had said there may be \u201csome good news\u201d regarding Hormuz in the coming hours, as Tehran and Washington pressed ahead with peace negotiations.<\/p>\n
Gold\u2019s reaction to the headlines was still \u201crelatively muted,\u201d said Justin Lin, analyst at Global X ETFs in Sydney. \u201cMarkets have seen announcements from Trump fizzle into nothing multiple times now and must see more concrete evidence of cooperation from Iran before confirming moves higher,\u201d Lin said.<\/p>\n
Bullion is still down about 13% since the conflict began in late February. Traders have ramped up rate-hike bets, as the Iran war has sent energy prices soaring. The money market is pricing in that the Federal Reserve is virtually certain to start raising rates by December. Higher interest rates weigh on bullion, which doesn\u2019t pay interest.<\/p>\n
As the new Fed chair Kevin Warsh takes the helm, investors will be looking for clues on his view on the economy.<\/p>\n
There may be some reluctance to chase gold\u2019s rebound given key details around Iran\u2019s nuclear program are still missing, said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. Markets in the US, UK, Hong Kong, and South Korea are also closed for holidays on Monday, resulting in \u201cthinner holiday liquidity,\u201d he added.<\/p>\n
Spot gold was up 1.2% at $4,562.24 an ounce at 10:30 a.m. in Singapore. Silver was 3% higher at $77.79. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was down 0.3%.<\/p>\n
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\u00a92026 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Gold jumped as signs the US and Iran are closing in on a deal that would…\n","protected":false},"author":2,"featured_media":692107,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[4536,45,49,48,5897,93497,252922,862,252921,172000],"class_list":["post-692106","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bloomberg","tag-business","tag-ca","tag-canada","tag-iran","tag-justin-lin","tag-peace-negotiations","tag-president-donald-trump","tag-secretary-of-state-marco-rubio","tag-strait-of-hormuz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/692106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=692106"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/692106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/692107"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=692106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=692106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=692106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}