This article first appeared on GuruFocus.
Gold (GLD) is moving higher again and interestingly, it’s happening right after tensions cooled.
Prices pushed to three-week highs after the U.S. and Iran agreed to a temporary ceasefire. Spot gold climbed roughly 1.8% to around $4,794 an ounce, after jumping more than 3% earlier in the session. Silver outperformed with a near 5% gain, while platinum and palladium also saw strong moves.
At the same time, the dollar softened, with the DXY slipping to about 98.9, and oil pulled back as fears around supply disruptions eased. On the surface, that might feel a bit odd. You’d expect gold to cool off when tensions ease but that’s not what’s happening.
What’s really going on is that the bigger picture hasn’t changed. There’s still uncertainty around rates, energy, and how stable this ceasefire actually is. Add in steady buying from China, and you’ve got enough support to keep gold moving higher even without fresh escalation.