Gold: Hormuz optimism supports rally – ING
ING’s Warren Patterson and Ewa Manthey highlight a sharp Gold rally of more than 4%, with prices moving closer to $4,300/oz as optimism grows that a US-Iran agreement and lower energy prices will ease inflation.
ING analysts Warren Patterson and Ewa Manthey report a significant 4% rally in gold prices, pushing them closer to the $4,300 mark, driven by optimism over a potential US-Iran agreement and reduced inflation pressure. A weaker US dollar, lower interest rate expectations, and ongoing Chinese investment demand are seen as key factors supporting the bullion market.
Analysts expect gold to continue its upward trajectory, guided by developments in US-Iran negotiations and shifts in Federal Reserve expectations. While geopolitical risks may fade, supportive factors such as lower oil prices, a weaker dollar, and potentially a more dovish Federal Reserve could keep the bullish trend in place. The article notes that GBP/USD is slightly defensive, down near the 1.3600s after reaching fresh peaks over 1.3670 the previous day, while EUR/USD faces modest losses around 1.1670 after failing to advance past 1.1700.
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