Gold prices stabilized at record highs after the conclusion of a difficult round of nuclear negotiations in Geneva. Despite mediators' statements about some progress, the market remains extremely tense due to conflicting signals from Washington and Tehran. This is reported by Bloomberg, writes UNN.
Details
As of Friday morning, the spot price of gold settled at $5185.75 per ounce, showing a steady upward trend for the week. The stability of quotes above the psychological mark of $5000 is due to a significant build-up of American military force in the region at the order of President Donald Trump.
Although Oman, as a mediator, announced "significant progress" and the continuation of dialogue next week, the disappointment of American officials with Thursday's results only added volatility to the market and supported demand for bullion.
State of related markets and currency factor
Against the backdrop of gold's stabilization, other precious metals showed mixed dynamics: silver fell by 0.3% to $88.07, platinum also decreased in price, while palladium showed moderate growth. The Bloomberg Dollar Index, which tracks the US dollar against a basket of major currencies, strengthened by 0.1%.
This situation indicates that investors currently prefer gold as the main tool for hedging risks in the event of a sudden escalation of hostilities or the failure of diplomatic efforts in Vienna.