Gold ticks higher as oil, the dollar, and yields all fall on Iran war uncertainty

[stack of shiny gold bars 3d illustration]
monsitj/iStock via Getty Images

Gold futures held steady for the second straight session Thursday, as hopes for a U.S.-Iran ceasefire deal eased worries that central banks may need to keep interest rates higher for longer to tamp down inflation.

Gold settled just below $4,540/oz, reversing an earlier decline of as much as 1.2%, as Secretary of State Rubio noted "some good signs" of a peace agreement with Iran, sending oil prices lower after rising early as much as 3%, and yields reversed course to trade down.

Market watchers said gold likely would need to see a significant easing in oil-driven inflation pressures or fresh evidence that slowing growth risks are beginning to outweigh inflation concerns to regain upward momentum.

"Oil down and ​the dollar retreating from a six-week high should bode well for gold in the short term here," Zaner Metals senior metals strategist Peter Grant said in a note, adding that the gold trade is "probably going to be a bit cautious here ​initially. We've seen [Iran peace] agreements sort of fall apart."

Gold has declined 14% since the war ‌started in ⁠late February, which has disrupted maritime traffic through the Strait of Hormuz, lifting energy prices and sparking inflation concerns.

Front-month Comex gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) for May delivery edged up 0.2% to $4,539.80/oz, and front-month Comex May silver (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]) added 0.7% to $76.414/oz.

ETFs: (GLD [https://seekingalpha.com/symbol/GLD]), (GDX [https://seekingalpha.com/symbol/GDX]), (GDXJ [https://seekingalpha.com/symbol/GDXJ]), (IAU [https://seekingalpha.com/symbol/IAU]), (NUGT [https://seekingalpha.com/symbol/NUGT]), (PHYS [https://seekingalpha.com/symbol/PHYS]), (GLDM [https://seekingalpha.com/symbol/GLDM]), (AAAU [https://seekingalpha.com/symbol/AAAU]), (SGOL [https://seekingalpha.com/symbol/SGOL]), (DUST [https://seekingalpha.com/symbol/DUST]), (RING [https://seekingalpha.com/symbol/RING]), (BAR [https://seekingalpha.com/symbol/BAR]), (OUNZ [https://seekingalpha.com/symbol/OUNZ]), (SGDM [https://seekingalpha.com/symbol/SGDM]), (SGDJ [https://seekingalpha.com/symbol/SGDJ]), (SLV [https://seekingalpha.com/symbol/SLV]), (PSLV [https://seekingalpha.com/symbol/PSLV]), (SIVR [https://seekingalpha.com/symbol/SIVR]), (SIL [https://seekingalpha.com/symbol/SIL]), (SILJ [https://seekingalpha.com/symbol/SILJ])

MORE ON GOLD AND SILVER

* GDX: Making Sense Of Gold Miners' Lagging Performance [https://seekingalpha.com/article/4907682-gdx-making-sense-of-gold-miners-lagging-performance]
* Silver And Gold Outlook - Metals Suffer From Their Upside Fake-Out [https://seekingalpha.com/article/4906612-silver-gold-outlook-metals-suffer-upside-fake-out]
* Gold Miners With High Upside Potential [https://seekingalpha.com/article/4906426-gold-miners-with-high-upside-potential]