The price of gold fell amid signs of stabilization of the situation between Israel and Iran. This is reported by UNN with reference to Bloomberg.
Details
According to the agency, the price of gold bullion fell by 1.3% at the end of yesterday's trading and reached a level of about 3,330 dollars per ounce.
According to analysts, the demand for defensive assets has decreased, as the parties adhere to the terms of the unstable truce.
Bloomberg reports that tensions between Israel and Iran have eased after criticism from US President Donald Trump.
The truce between Israel and Iran continued after US President Donald Trump criticized both sides for the first violations of the agreement
Despite the overall geopolitical tensions, as well as Trump's trade actions and the activity of central banks, which this year stimulated the growth of gold prices by 27%, the market has recently shown stabilization.
In the last few months, the growth has lost momentum, and bullion is mostly traded between 3,300 and 3,400 dollars per ounce
Additionally
US economic statistics also have an impact on quotations. In particular, the consumer confidence index unexpectedly decreased in June. This raised concerns about the consequences of trade policy for the economy and the labor market.
"This may encourage the Federal Reserve to cut rates in the coming months," Bloomberg notes.
At the same time, Fed Chairman Jerome Powell called for not rushing with this decision. Lowering rates is traditionally considered a positive factor for gold, as this asset does not bring interest income.
As of 10:35 Singapore time (05:35 Kyiv time), the spot price of gold rose by 0.2% to 3,330 dollars 85 cents per ounce. The Bloomberg spot dollar index remained unchanged. Silver prices did not change, while platinum continued to decline.
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