Gold rose for a third straight session on Thursday, supported by a softer dollar as hopes grew for a potential peace deal between the United States and Iran.<\/p>\n
Chalinee Thirasupa | Bloomberg | Getty Images<\/p>\n
Gold\u00a0rose for a third straight session on Thursday, supported by a softer dollar as hopes grew for a potential peace deal between the United States and Iran.<\/p>\n
Spot\u00a0gold<\/a>\u00a0was up 0.3% at $4,701.19 per ounce, as of 0231 GMT, after rising about 3% on Wednesday to hit its highest level since April 27. U.S.\u00a0gold\u00a0futures<\/a>\u00a0for June delivery rose 0.4% to $4,710.<\/p>\n Iran said on Wednesday it was\u00a0reviewing\u00a0a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.<\/p>\n “I think most markets overreacted as (the deal) is still a work in progress and anything could unravel. Nevertheless, we saw enough dollar weakness to propel\u00a0gold\u00a0prices higher. Lower Treasury yields also boosted\u00a0gold,” said Edward Meir, an analyst at Marex.<\/p>\n Gold\u00a0could remain rangebound in the near term, trading between $4,600 and $5,100 an ounce, he said.<\/p>\n The dollar edged down 0.1%, making bullion less expensive for holders of other currencies.\u00a0<\/p>\n Benchmark 10-year U.S. Treasury yields<\/a>\u00a0have eased 0.6% so far this week, lowering the opportunity cost of holding\u00a0gold.<\/p>\n Brent crude oil prices are down about 6% so far this week as optimism grew about a possible end to the war in the Middle East.<\/p>\n Gold\u00a0prices have fallen more than 10% since the war began in late February.<\/p>\n Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While\u00a0gold\u00a0is seen an inflation hedge, high interest rates tend to weigh on the non-yielding asset.<\/p>\n Investors now await the monthly U.S. employment\u00a0report\u00a0on Friday to see if the U.S. economy remains resilient enough to keep the Federal Reserve’s<\/a> monetary policy on hold.<\/p>\n Spot silver<\/a>\u00a0rose 0.5% to $77.68 per ounce, platinum<\/a>\u00a0was steady at $2,060.18, and palladium<\/a>\u00a0was down 0.1% at $1,536.54.<\/p>\n