1 hr ago
Gold Holds Gains as Trump Comments Ease Inflation Fears
Gold prices stayed higher after rising the day before.
President Donald Trump said attacks on Iran would probably not last long.
This reduced some fears that a larger war would push energy prices much higher.
Higher energy prices can make inflation worse, which can affect gold prices.
A weaker US dollar can make gold more attractive to some buyers.
John Williams said inflation appears to be easing.
He also said higher energy prices are not spreading to other services.
Earlier, Kevin Warsh warned that interest rates might need to rise to control inflation.
Investors are watching these comments and economic data to guess what the Federal Reserve will do next.
Gold traded around $4,385 an ounce after rising 1% the previous day.
Trump said the latest attacks on Iran would likely be short-lived, slowing oil’s rally.
The renewed fighting had raised concerns about a prolonged war and higher inflation.
John Williams said inflation continues to ease as tariff effects fade and energy costs remain contained.
Kevin Warsh’s hawkish speech had earlier increased expectations of possible US rate hikes.
- Who
- Gold investors, US President Donald Trump, Federal Reserve officials John Williams and Kevin Warsh, and US companies were involved in the market developments.
- What
- Gold held a gain while oil’s rally slowed and investors assessed geopolitical risks, inflation data, employment figures, and possible US interest-rate moves.
- Where
- Gold was traded in the Singapore market, while the geopolitical concerns involved attacks on Iran and the broader Middle East.
- When
- Gold was trading Wednesday at 7:56 a.m. in Singapore; it had risen 1% the previous day, while the Federal Reserve was expected to meet in two weeks.
- Why
- Trump’s comments reduced fears of prolonged military action and inflation, while a weaker dollar and changing expectations for Federal Reserve policy also supported gold.
Inflation Appears To Be Easing
Rates May Need To Rise
Federal Reserve policy
Inflation Appears To Be Easing
Federal Reserve Bank of New York President John Williams said inflation continues to ease as tariff effects fade and higher energy prices are not spreading to other services.
Rates May Need To Rise
Fed Chairman Kevin Warsh gave a hawkish speech that increased expectations the US central bank may need to raise rates to contain inflation.
Energy and conflict risks
Inflation Appears To Be Easing
Trump’s statement that the latest attacks on Iran would likely be short-lived reduced fears of an open-ended conflict and a prolonged energy-price surge.
Rates May Need To Rise
The renewed fighting had rekindled concerns that a wider or longer war could push energy prices higher and fuel inflation, creating a headwind for gold.
Key facts
- Gold price
- Spot gold rose 0.1% to $4,386.94 an ounce at 7:56 a.m. in Singapore.
- Previous move
- Bullion rose 1% the previous day, ending a three-day decline.
- Oil outlook
- Oil’s rally slowed after Trump said the latest attacks on Iran would likely be short-lived.
- Silver price
- Silver rose 0.1% to $65.38 an ounce.
- Dollar
- The Bloomberg Dollar Spot Index was flat after falling 0.2% in the previous session.
- Federal Reserve outlook
- John Williams said inflation continues to ease, while Kevin Warsh’s speech had raised expectations of a possible rate increase.
Sources
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