Gold Climbs 1.1% to $4,531.99 as Oil and Treasury Yields Ease
Updated
Updated · Reuters · May 20
Gold Climbs 1.1% to $4,531.99 as Oil and Treasury Yields Ease
15 articles · Updated · Reuters · May 20
Spot gold rose 1.1% to $4,531.99 an ounce after earlier hitting a more than seven-week low, while June U.S. gold futures settled 0.1% higher at $4,535.30.
Brent crude and benchmark Treasury yields both eased as President Donald Trump said the war with Iran would end "very quickly," tempering inflation fears and lowering the opportunity cost of holding bullion.
Fed minutes still showed more policymakers were prepared to lay the groundwork for a rate hike, warning the Iran war could fuel inflation if price pressures stay above the 2% target.
CME FedWatch now shows a 48.6% chance of a December rate hike and an 89.6% chance rates stay unchanged in June, a backdrop that could limit gold's rebound.
Citi kept a cautious near-term stance with a zero-to-three-month gold target of $4,300 an ounce, even as silver jumped 3.1% and platinum and palladium also advanced.
Amid the Iran conflict, is gold's rally a true recovery or just a short-lived bounce from recent lows?
How long can emergency oil reserves sustain the global economy if the Strait of Hormuz remains closed?
As diplomacy gains traction, is Iran's strategy of disrupting global oil achieving its wartime goals?