Gold climbs as dollar weakens, oil prices retreat

Gold prices moved higher on Thursday, supported by a weaker U.S. dollar and declining oil prices, as investors evaluated renewed optimism surrounding a potential resolution to the conflict involving the United States, Israel and Iran, News.Az reports, citing Reuters.

Spot gold climbed 0.7% to $4,464.69 per ounce as of 0408 GMT, while U.S. gold futures for August delivery rose 0.6% to $4,491.70.

Market sentiment improved after Israel and Lebanon agreed to implement a ceasefire aimed at ending hostilities, according to an announcement by the Trump administration on Wednesday. The development fueled hopes that broader diplomatic efforts could eventually help ease tensions involving Iran.

Adding to expectations of a possible de-escalation, the Republican-controlled U.S. House of Representatives approved a resolution seeking to prevent President Donald Trump from continuing the war against Iran. The move highlighted growing unease among some members of the president’s own party regarding the conflict, which has lasted for three months.

Meanwhile, oil prices declined on Thursday as the Israel-Lebanon ceasefire strengthened expectations that a wider peace agreement involving the United States and Iran could be achievable.

Lower oil prices helped support gold, as elevated energy costs can fuel inflation and encourage central banks to keep interest rates higher for longer periods. Although gold is traditionally viewed as a hedge against inflation, higher interest rates generally reduce the appeal of the non-yielding precious metal.

Among other precious metals, spot silver gained 1% to $73.44 per ounce. Platinum advanced 1% to $1,878.50 per ounce, while palladium rose 0.6% to $1,309.68 per ounce.

News.Az 

By Nijat Babayev