Trump spoke, oil fell, gold rose

US President Donald Trump's remarks that the ongoing war in the Middle East could end soon have led to significant fluctuations in global markets. Following Trump's statements, the dollar and oil lost value, while demand for gold, which investors view as a safe haven, increased.

Bullion gold rose 0.9% to exceed $5,180 per ounce, recovering from losses in the previous session. According to current data, spot gold reached $5,184.41 per ounce as of 10:00 Singapore time. Silver also saw a 2.9% increase, reaching $89.49. While an increase was observed in platinum prices, a decline was recorded in palladium. As of 07:30 (TRT), gold per ounce is at the 5,162 level.

Trump emphasized that the ongoing conflict in the Middle East could be resolved "very soon." While a 0.1% decline in the index measuring the performance of the US dollar was reflected in expectations, oil prices also experienced a decrease of over 10% due to the impact of volatile trading.

Signals from the White House that it is close to a compromise in the two-week-long war between the US and Iran have changed investors' risk perception. Previously, the closure of the Strait of Hormuz and missile attacks by Iran on energy infrastructure had caused rapid increases in oil prices and concerns about inflation. These concerns had reduced the likelihood of interest rate cuts by central banks, primarily the US Federal Reserve (Fed). A high-interest-rate environment is generally seen as negative for gold, which does not yield a return.

On the other hand, it was observed that during the sell-off waves in global stock markets during the war period, investors sometimes turned to selling gold to provide liquidity.

Daniel Ghali, a senior commodity strategist at TD Securities, pointed out that the pressure on gold continues as investors delay waiting for potential interest rate cuts. Ghali stated that there are signs that some investors are viewing the price drops as opportunities for new purchases, but that trading volume remains limited.

News Source: 12punto