After rising nearly 2 percent yesterday, gold stabilized above $4,600 per ounce, supported by the sharp depreciation in the US dollar following news that Japan intervened in foreign exchange markets.
The weakening of the US dollar is supporting gold, which is generally priced in US dollars. Despite this, gold is poised to record its second weekly decline due to diminishing expectations for the US-Iran peace deal and expectations that the Strait of Hormuz will not reopen anytime soon.
While Trump said that the USA would continue the naval blockade of Iranian ports, Tehran stated that it would not give up its nuclear program and would retain control of the strait. The resulting disruption in energy supply has increased inflation concerns, reinforcing expectations that major central banks may keep interest rates higher for longer or tighten them further.
Meanwhile, data from the World Gold Council showed that central banks increased gold reserves in the first quarter.
OUNCE OF GOLD
Ounce gold started the day at 4 thousand 629 dollars. During the day, the lowest level was 4 thousand 609 dollars and the highest level was 4 thousand 636 dollars. It is currently trading at $4,611.
GRAM GOLD
Gram gold started the day at 6 thousand 714 liras. During the day, the lowest level was 6 thousand 693 liras and the highest level was 6 thousand 729 liras. It is currently selling for 6 thousand 694 liras.
