Gold rises on softer dollar, oil as markets weigh US Iran peace optimism

Old prices gained today (4 June), supported by lower crude ‌oil prices and a weaker dollar, as investors assessed renewed expectations for a resolution to the US-Israeli war with Iran.

Spot gold was up 0.8% at $4,468.84 per ounce, as of 0559 GMT. US gold futures ​for August delivery gained 0.7% to $4,495.70.

"Gold's gains are still very much at the ⁠mercy of oil and the dollar. It only moves higher when they pull back, ​making it highly dependent on positive US-Iran headlines for any sustained momentum," said Tim Waterer, ​chief market analyst at KCM Trade.

Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said yesterday, boosting hopes for a broader deal to end the Iran conflict.

The Republican-led ​US House of Representatives approved a resolution to block US President Donald Trump from the war against Iran, reflecting growing concern among members of his party about the three-month-old conflict.

Oil prices ‌eased today, as the ceasefire between Lebanon and Israel boosted hopes of a US-Iran peace deal.

Elevated oil prices can accelerate inflation and keep interest rates higher for longer. While gold is seen as a hedge against inflation, higher rates tend to weigh on the ​non-yielding metal.

New York Federal ​Reserve President John ⁠Williams noted that he does not expect upside risks to inflation caused by the war in the Middle East to materialise and ​reiterated that there was no need at this time to change ​US monetary ⁠policy.

"I don't think we've seen the end of the bull run, but it is clearly time for a shakeout in general. So I anticipate choppy trade as we head into the ⁠year-end, ​with a slight upward bias of around $5,000," said Matt ​Simpson, a senior analyst at StoneX.

Spot silver rose 0.6% to $73.13 per ounce, platinum gained 0.9% to $1,875.70, and palladium ​added 0.3% to $1,306.