(Bloomberg) — Gold declined the most in more than two weeks as US President Donald Trump said he would extend the ceasefire with Iran, after plans for diplomatic talks between the two countries were scrapped.<\/p>\n
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Bullion fell as much as 3.1% before paring some losses after Trump said Tuesday in a Truth Social post that he\u2019s extending the ceasefire until talks conclude while the US continues its blockade on the Strait of Hormuz, the vital waterway for oil shipments.<\/p>\n
The dollar and Treasury yields pushed higher, weighing on the precious metal as it\u2019s priced in the greenback and doesn\u2019t pay interest. Oil remained at elevated levels above $90 a barrel, intensifying inflationary pressure that makes central banks more likely to hold interest rates steady or even raise them.<\/p>\n
Earlier, gold was weighed down after Federal Reserve Chair nominee Kevin Warsh said the Fed needed a new framework for dealing with persistent inflation, without offering more specifics. Warsh is known for his hawkish stance on inflation. Investors don\u2019t expect him to deliver the aggressive rate cuts urged by Trump, but rather pursue a measured approach with gradual moves to lower borrowing costs.<\/p>\n
Markets remain \u201con edge over whether fresh peace talks would materialize before the ceasefire expires this week, with conflicting signals from both sides adding to volatility,\u201d Manav Modi, commodity analyst at Mumbai-based Motilal Oswal Financial Services Ltd., said in a note. \u201cWith uncertainty around both geopolitics and policy outlook persisting, gold remains under pressure.\u201d<\/p>\n
Gold has lost about 11% since the conflict began in late February, with a liquidity squeeze during the early days of fighting prompting investors to offload gold to cover losses elsewhere in their portfolios.<\/p>\n
\u201cSome repositioning and deleveraging during times of cross-asset volatility should be expected,\u201d Marc Loeffert, a trader at Heraeus Precious Metals GmbH, wrote in a note. \u201cThis volatility is likely to last for some time but, in the long run, gold will retain its fundamental attraction as a way to retain purchasing power.\u201d<\/p>\n
Spot gold was 2.1% lower at $4,720.04 an ounce as of 4:59 p.m. in New York. Silver slid 0.036% to $76.70 an ounce. Platinum and palladium also declined. The Bloomberg Dollar Spot Index, a gauge of the US currency, gained 0.4%.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Gold declined the most in more than two weeks as US President Donald Trump said he…\n","protected":false},"author":2,"featured_media":404635,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[1877,4567,54,42,118946,191338,43,191337,40,38,41,39,148160],"class_list":["post-404634","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-bloomberg","tag-diplomatic-talks","tag-donald-trump","tag-headlines","tag-kevin-warsh","tag-motilal-oswal-financial-services-ltd","tag-news","tag-oil-shipments","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-treasury-yields"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/404634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=404634"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/404634\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/404635"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=404634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=404634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=404634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}