Gold rises as oil weakens after US extends ceasefire with Iran

Synopsis

Gold gained as easing oil prices and the extension of the US-Iran ceasefire supported sentiment, with investors balancing reduced inflation risks against ongoing geopolitical uncertainty.

Gold prices rose on Wednesday after hitting a one-week low in the previous session, helped by lower oil prices after the U.S. extended a ceasefire with Iran, easing fears of an inflation spike and higher-for-longer interest rates.

FUNDAMENTALS

* Spot gold rose 0.6% to $4,739.94 per ounce, as of 0105 GMT, after falling to its lowest level since April ‌13 in the ⁠previous ⁠session.

* U.S. gold futures for June delivery gained 0.8% to $4,758.60.

* U.S. President Donald Trump said on Tuesday he would indefinitely extend the ceasefire with Iran, hours before it was set to expire. Trump's announcement appeared to be unilateral, and it was not immediately clear whether Iran or the U.S. ally Israel would agree to extend the ceasefire, which began two weeks ago.

* Stocks ⁠gained, dollar ‌eased and oil prices turned lower following the ceasefire extension.

* Federal Reserve chief nominee Kevin Warsh said on Tuesday he had made ⁠no promises to Trump about cutting interest rates, as he tried to assure U.S. senators mulling his confirmation to lead the central bank that he would act independently of the White House while pursuing broad reforms.

* Meanwhile, Trump on Tuesday told CNBC that he would be disappointed if Kevin Warsh did not cut interest rates right away once he took office after being approved by the Senate.

* ‌Gold exports from Switzerland rose 30% month-on-month in March, as shipments to Britain jumped to their highest since December and supplies to China, a major bullion consumer, increased ⁠by 18%.

* U.S. retail sales increased more than expected in March as the war with Iran boosted gasoline prices and receipts at service stations, while tax refunds supported spending elsewhere.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 965.94 metric tons on Monday.

* Spot silver rose 1% to $77.47 per ounce, platinum gained 0.8% to $2,052.99, and palladium was up 1.3% at $1,552.75.

DATA/EVENTS (GMT)

0600 UK Core CPI YY Mar

0600 UK CPI YY Mar

0600 UK CPI Services MM, YY Mar

1400 EU Consumer Confid. Flash Apr

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