Gold Climbs as Ceasefire Hopes Weaken Dollar and Pull Oil Lower
CNBC reported Thursday that gold prices advanced more than 1% as fresh optimism around a Middle East resolution pushed oil sharply lower, softened the dollar, and lifted bullion above a key technical level.
Spot gold climbed 0.8% to $4,466.89 per ounce during Thursday’s session. August gold futures added 0.9%, settling near $4,508.00. Silver, platinum, and palladium all posted similar gains, with spot silver rising 1.1% to $73.52 per ounce.
Ceasefire News Drives the Move
Israel and Lebanon announced late Wednesday they had agreed to a ceasefire arrangement. The news immediately stoked hopes that a broader agreement between Washington and Tehran could follow. Oil prices dropped more than 3% on the prospect of the Strait of Hormuz reopening to unrestricted traffic. A softer dollar followed, easing roughly 0.3% against a basket of peers and making dollar-denominated gold cheaper for international buyers.
Yields on U.S. Treasuries, including the closely watched 10-year note, also declined. Lower yields reduce the opportunity cost of holding non-yielding assets like gold, amplifying the metal’s appeal in risk-sensitive environments.
Independent metals trader Tai Wong told CNBC that the ceasefire news helped gold hold just above its 200-day moving average, a level traders treat as a significant support line.
A Record High Now Feels Distant
Gold hit an all-time peak of $5,594.82 per ounce on January 29 this year. Since the escalation of the Iran conflict in late February, the metal has shed roughly 16% of its value. Persistently elevated interest rates have been a primary headwind, suppressing demand for assets that generate no yield.
Wong cautioned that a return to record territory looks increasingly difficult without a clean, lasting resolution to the Iran standoff. A genuine ceasefire that reopens the Strait of Hormuz, he noted, would need to bring energy prices down meaningfully and ease market anxiety about prolonged rate pressure.
Jobs Data Looms Large for Gold’s Next Move
Traders are now turning focus toward Friday’s U.S. employment report for May. A stronger-than-expected print could reinforce the Federal Reserve’s case for keeping rates higher for longer, which would weigh on bullion. A weaker reading might revive bets on Fed easing and lend gold fresh support heading into the summer.
The interplay between geopolitical developments and domestic economic data will likely set gold’s near-term direction, making the next 48 hours pivotal for precious-metals traders.
Read Next: Fed Holds Rates Steady as Inflation Data Keeps Policymakers Cautious
