[BENGALURU] Gold prices held their ground on Wednesday (Jun 25) as a tentative ceasefire between Iran and Israel dampened safe-haven demand, though a weaker US dollar and bargain-hunting after bullion’s decline in the previous session helped limit losses.
Spot gold was unchanged at US$3,326.39 per ounce, as at 0042 GMT, after hitting an over two-week low on Tuesday.
US gold futures edged 0.2 per cent higher to US$3,340.
On Tuesday, Iran and Israel signalled a halt to their air war following US President Donald Trump’s public reprimand over ceasefire violations announced earlier that day.
The US dollar index hovered near a one-week low, making greenback-priced gold more attractive to overseas buyers.
US consumer confidence unexpectedly deteriorated in June as households increasingly worried about job availability, another indication that labour market conditions were softening against the backdrop of rising economic uncertainty because of the Trump administration’s tariffs.
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Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve’s consideration of possible rate cuts, Fed chair Jerome Powell told members of Congress on Tuesday.
Federal Reserve Bank of Cleveland president Beth Hammack said on Tuesday that she sees no pressing need to cut interest rates when there’s still a lot of uncertainty what trade tariffs will do to inflation, which is still above the central bank’s target.
Fed funds futures traders are now pricing in 61 basis points of rate cuts for 2025, with the first move expected to come in September.
According to a report by the Official Monetary and Financial Institutions Forum (OMFIF), one in three central banks managing a combined US$5 trillion plan to increase exposure to gold over the next one-to-two years after stripping out those planning to decrease, the highest in at least five years.
Elsewhere, spot silver was up 0.1 per cent at US$35.94 per ounce, platinum fell 0.2 per cent to US$1,313.88, while palladium was down 0.2 per cent at US$1,064.01. REUTERS
