Gold prices continue to rise in the global market

ISLAMABAD: Gold prices in the global market remained almost stable on Friday and appeared to be trending upwards for the fourth consecutive week, as hopes of a possible peace deal between the United States and Iran have somewhat eased concerns about inflation and high interest rates.

Spot gold remained almost unchanged at $4,789.67 an ounce, but increased by 0.9 percent on a weekly basis. US gold futures for June also remained stable at $4,809.30.

Meanwhile, a 10-day ceasefire between Lebanon and Israel has come into effect since Thursday, while US President Donald Trump has said that the next negotiation meeting between the United States and Iran could possibly take place at the end of the week.

According to experts, investors are now waiting for practical progress in the US-Iran talks. They say that if the ceasefire holds or progress is made in the talks, oil prices and inflation concerns may decrease further, which may lead to a further increase in gold prices.

The US dollar steadied somewhat after hitting a six-week low in the previous session, but overall it is on a downward trend for the second week in a row. A weaker dollar makes assets like gold cheaper for holders of other currencies.

On the other hand, oil prices have also fallen, as hopes of an end to the Iran war have eased inflation concerns. It should be remembered that concerns about rising energy prices have pushed gold prices down more than 8 percent since the war began in late February.

Although gold is considered a safe investment against inflation, high interest rates limit its demand because it does not provide a return. According to traders, the probability of a 25 basis point cut in interest rates by the US Federal Reserve in December has now dropped to 27 percent, compared to two cuts expected before the war.

Experts say that pressure on gold prices may persist during the year, but geopolitical risks are expected to keep prices above $3,500 an ounce.

Among other precious metals, silver fell 0.2 percent to $78.26 an ounce, but is also on track to gain for a fourth straight week. Platinum fell 0.5 percent to $2,075.30 while palladium rose 0.1 percent to $1,552.91, both metals on track for a third straight week of gains.