Gold steady as markets await Powell's comments on Iran war impact

Synopsis

Gold prices remained largely steady as investors awaited U.S. Federal Reserve Chair Jerome Powell's comments for insights into the economic impact of the Iran conflict amid stalled peace talks. Market participants are also anticipating central bank decisions from the ECB, BoE, and BoC this week.

Gold was largely steady on Wednesday as investors awaited U.S. Federal Reserve Chair Jerome Powell's comments to assess the Iran war's impact on the economy amid stalled peace talks.

FUNDAMENTALS

* Spot gold was up 0.1% at $4,598.45 per ounce, as of 0055 GMT, after falling to its lowest level since April 2 in ‌the previous ⁠session.

* U.S. ⁠gold futures for June delivery rose 0.1% to $4,612.10.

* Efforts to end the Iran conflict were at an impasse with U.S. President Donald Trump unhappy with the latest proposal from Tehran, which he said had informed the U.S. it was in a "state of collapse" and figuring out its leadership situation.

* Investors expect the Fed to hold interest rates steady ⁠at the ‌end of its two-day meeting ending later in the day.

* Investors will also be focusing on other central bank decisions ⁠this week, including those from the European Central Bank, the Bank of England and the Bank of Canada.

* China, the world's top gold consumer, net imported 47.866 metric tons in March from Hong Kong, up from 46.249 tons in February, Hong Kong Census and Statistics Department data showed on Tuesday.

* Energy prices are expected to surge by 24% in 2026 to their ‌highest since Russia's full-scale invasion of Ukraine four years ago, if the most acute disruptions caused by the war in the Middle East end in ⁠May, the World Bank said on Tuesday.

* Oil prices closed up nearly 3% on Tuesday as persistent worries about supply constraints from the closed Strait of Hormuz outweighed concerns about the United Arab Emirates' decision to leave OPEC and the wider OPEC+ group. [O/R]

* Spot silver rose 0.1% to $73.12 per ounce, platinum gained 0.1% to $1,942.60, while palladium was down 0.1% at $1,459.14.

DATA/EVENTS (GMT)

0900 EU Consumer Confid. Final Apr

1200 Germany CPI Prelim YY Apr

1200 Germany HCIP Prelim YY Apr

1230 US Durable Goods Mar

1230 US Housing Starts Number Mar

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