Gold Rises 0.7% to $4,461 as Weaker Dollar and Peace Hopes Cool Oil
Updated
Updated · CNBC · Jun 4
Gold Rises 0.7% to $4,461 as Weaker Dollar and Peace Hopes Cool Oil
3 articles · Updated · CNBC · Jun 4
Summary
Spot gold climbed 0.7% to $4,461.09 an ounce, with August U.S. futures up 0.5% to $4,487.90 in early trade.
Lower crude prices and a softer dollar drove the move after Israel and Lebanon agreed to a ceasefire, lifting hopes for a broader deal to end the U.S.-Iran conflict.
The easing in oil matters for bullion because lower energy prices can temper inflation pressure and reduce the risk that U.S. interest rates stay higher for longer.
John Williams said any war-driven inflation upside should not be long-lasting and saw no need to change policy now, while analysts said gold's rally still depends on oil, the dollar and positive U.S.-Iran headlines.
The House's vote to block President Donald Trump from continuing the three-month war underscored widening political pressure as traders look for gold to stay choppy but retain an upward bias toward $5,000.