PRECIOUS-Gold rises on softer dollar, oil as markets weigh US-Iran peace optimism
June 4 (Reuters) - Gold prices gained on Thursday, supported by lower crude oil prices and a weaker dollar, as investors assessed renewed expectations for a resolution to the U.S.-Israeli war on Iran.
FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $4,450.16 per ounce, as of 0051 GMT. U.S. gold futures GCcv1 for August delivery gained 0.2% to $4,477.
* The dollar eased, making greenback-priced bullion more affordable for holders of other currencies. USD/
* Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, boosting hopes for a broader deal to end the Iran conflict.
* The Republican-led U.S. House of Representatives approved a resolution on Wednesday to block U.S. President Donald Trump from continuing the war against Iran, reflecting growing concern among members of his party about the three-month-old conflict.
* Oil prices eased in early trade on Thursday, as the ceasefire between Lebanon and Israel boosted hopes of a U.S.-Iran peace deal. O/R
* U.S. economic activity increased a bit in recent weeks, employment was little changed, and the fallout from higher energy prices due to the war in the Middle East was pervasive, the Federal Reserve said in its latest "Beige Book" report.
* New York Federal Reserve President John Williams noted that he does not expect upside risks to inflation caused by the war in the Middle East to be long-lasting and reiterated there was no need at this time to change U.S. monetary policy.
* Meanwhile, Dallas Federal Reserve President Lorie Logan said strong economic growth and corporate earnings “going gangbusters” are raising concerns that the Fed may need to increase interest rates this year to bring inflation back to its 2% target.
* The National Bank of Poland (NBP) has about 613 tons of gold reserves, which are among the 10 biggest in the world, Governor Adam Glapinski said on Wednesday.
Spot silver XAG= rose 0.8% to $73.26 per ounce, platinum XPT= gained 0.2% to $1,863.25, and palladium XPD= added 0.5% to $1,307.67.
DATA/EVENTS (GMT) |
|
0830 |
UK S&P Global PMI: MSC Composite - Output May |
1230 |
US Initial Jobless Clm May 30, w/e |
