【Gold Price Trend】Gold prices continue to rise, with spot gold briefly surpassing the $4,700 level, optimistic that the Iran war may come to an end

Gold prices continued their streak of gains for a third straight day. The market is hoping that the Iran war may come to an end, and spot gold once rose through the $4,700 level, to $4,689 in the latest update, up 0.5%. New York futures gold was quoted at $4,721, up 0.9%.

U.S. President Trump said he expects the United States to end its war with Iran within two to three weeks. Iran’s President Masoud Pezeshkian said Tehran is willing to end the war, provided that it is ensured it will no longer be attacked.

David Wilson, head of commodities strategy at BNP Paribas in Paris, said the market is largely driven by news headlines, and in fact it does not seem that anything has changed. However, this does show that if a peace agreement is about to be reached, gold prices will surge significantly. Conversely, if U.S. forces invade Iran in some form, gold prices can be expected to show the opposite trend and fall.

On the other hand, traders are assessing statements from the Federal Reserve to look for clues about central bank interest-rate policy. Federal Reserve Chair Powell previously said that long-term inflation expectations remain stable, and attention in the bond market has shifted from ever-rising inflation to the impact of war on economic growth.

Yuxuan Tang, head of Asia rates and FX strategy at JPMorgan Private Bank, said when the market’s focus shifts from inflation risk to growth risk, gold’s safe-haven appeal often reappears, and added that he is firmly convinced there is limited room for the Fed to raise rates in this cycle.

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