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Gold rallies more than 4% as US-Iran deal optimism grows
ING analysts point to a softer dollar, eased expectations for Fed tightening, and disinflation hopes from lower energy prices as drivers pushing prices near $4,300 an ounce.
Gold prices rose more than 4% after a rally continued toward $4,300 per ounce, as analysts cited growing optimism that a US-Iran agreement could ease inflation, according to FXStreet. FXStreet said ING’s Warren Patterson and Ewa Manthey linked the move to a softer US dollar and reduced expectations for Federal Reserve tightening, which can support non-yielding assets like bullion. The analysts also highlighted continued investment demand from China as another support for prices. ING further suggested gold will likely track developments in US-Iran negotiations and shifts in Fed expectations. FXStreet reported the firm expects geopolitical risk premiums could fade, while lower oil prices and the potential for a more dovish-than-expected rates environment should remain supportive for bullion.
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