Gold prices rose in Asian trading on Wednesday, supported by a drop in oil prices and a slightly weaker U.S. dollar, but gains were capped by still-elevated Middle East tensions.
Spot gold was last up 1.8% at $4,553.55 an ounce by 03:19 ET (07:19 GMT). U.S. Gold Futures jumped 3.3% to $4,582.70.
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Iran strikes continue even as US says negotiations took place Investors reacted to reports that the United States had sent Iran a 15-point plan aimed at ending the war in the Middle East.
U.S. President Donald Trump said Washington was “in negotiations right now” with Iran, adding that Tehran was “talking sense” and appeared eager to strike a peace deal.
However, local media reports said that Israel struck Iran’s capital Tehran on Wednesday.
Trump had earlier described talks with Iran as “productive” earlier this week, although Iranian officials denied that any negotiations were taking place.
Oil prices, which had surged in previous sessions on supply disruption fears, slipped on Wednesday, but remained elevated.
The decline in oil prices helped support gold by easing inflation expectations, which in turn reduced pressure on central banks to keep interest rates higher for longer.
Lower energy costs can dampen bond yields and weaken the dollar, both of which tend to benefit non-yielding assets such as gold.
The US Dollar Index fell 0.1% in Asian trading on Wednesday.
Gold pressured by inflation fears Gold had come under heavy pressure in recent sessions as rising oil prices and bond yields fueled inflation fears and strengthened the dollar, triggering a broad selloff in precious metals.
Despite Wednesday’s rebound, analysts said volatility is likely to persist, as markets remain highly sensitive to headlines around the Middle East conflict.
In other precious metals, silver prices rose 3% to $73.41 per ounce, while platinum gained 2.2% to $1,977.60/oz.
Benchmark Copper Futures on the London Metal Exchange added 1.2% to $12,264.33 a ton, while U.S.Copper Futures fell 0.7% to $5.52 a pound.
