Faraz Saeed

LAHORE: Gold prices rebounded on Wednesday after a nine-session decline that stripped more than 20% from the metal&#39;s value. Easing oil prices and tentative signs of Middle East&nbsp;<a href="https://www.pakistantv.com/article/trump-says-iran-negotiators-fear-being-killed-by-own-people" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">de-escalation</a>&nbsp;steadied sentiment following one of the sharpest corrections in recent months. Spot gold rose nearly 2% to $4,551.50 an ounce. US gold futures for April delivery climbed more than 3% to $4,565.60. Prices had fallen from around $5,200 to near $4,100 earlier in the week. Crude markets drove the recovery. Brent&nbsp;<a href="https://www.pakistantv.com/article/us-israeli-war-on-iran-day-26" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">fell about 5%</a>&nbsp;and West Texas Intermediate dropped roughly 4% as fears over supply disruptions through the Strait of Hormuz, a critical global shipping route, eased. President Donald Trump said the United States and Iran were &quot;in&nbsp;<a href="https://www.pakistantv.com/article/us-15point-plan-conveyed-to-iran-via-pakistan-officials" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">negotiations</a>.&quot; Iranian officials later denied direct talks were underway, according to AFP. Gold&#39;s safe-haven status offered little protection during the selloff. Rising oil prices had pushed inflation expectations higher, prompting investors to reassess the monetary policy outlook. Markets began pricing in a prolonged period of elevated Federal Reserve rates. Bond yields climbed. The US Dollar Index strengthened. Both factors weigh on gold by eroding its appeal against yield-bearing assets and raising its cost for holders of other currencies. The scale of the decline went beyond macroeconomic forces alone. The Head of Research at Floret Capitals, Talha Naveed, said the downturn reflected converging pressures across energy markets, investor positioning, and physical gold trade flows. It was not, he said, a straightforward response to geopolitical developments. Disruptions in physical gold markets added further pressure. In Dubai, a key global trading hub, supply chain interruptions and reduced activity led to localized price dislocations. Physical gold traded at discounts in some regions. Falling equity markets compounded the selloff. Margin calls forced institutional investors to liquidate gold holdings (considered among the strongest-performing assets over the past year) to raise cash and rebalance positions. &quot;That profit-taking accelerated downside momentum despite gold&#39;s safe-haven status,&quot; Naveed said. He also cited technical factors. Gold had entered overbought territory after an extended rally. The geopolitical shock acted as a catalyst for a correction toward key long-term support levels, not the start of a new downward trend. Major financial institutions maintained bullish longer-term outlooks. Goldman Sachs said the pullback was consistent with historical patterns tied to rising rate expectations. Bank of America projected gold could reach $6,000 per ounce within 12 months. UBS said prices could climb further under sustained geopolitical stress.

A woman walks past jewelleries on display shop at a gold market in Lahore. (AFP)

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Gold surged nearly 2% after tumbling for nine sessions, as easing oil prices and signs of Middle East calm helped steady markets following a steep selloff that erased over 20%.

Gold drops sharply as oil-driven rate concerns weaken safe-haven appeal

HONG KONG: Gold prices soared to a fresh record near $5,600 on Thursday, while oil rallied after Donald Trump ramped up geopolitical tensions with his threatened military strike on Iran. The surge in safe-haven precious metals also saw silver hit another peak and has been helped by a softer dollar sparked by speculation that the US president is happy to see the world&#39;s reserve currency weaken. An uneventful policy announcement by the Federal Reserve did little to inspire buying, though observers said traders are optimistic that interest rates will come down as Trump prepares to name his pick for the next governor. Bullion piled on more than $300 at one point to top $5,595 after Trump said Tehran needed to negotiate a deal over its nuclear program, which the West believes is aimed at making an atomic bomb. &ldquo;Hopefully Iran will quickly &#39;Come to the Table&#39; and negotiate a fair and equitable deal -- NO NUCLEAR WEAPONS -- one that is good for all parties. Time is running out, it is truly of the essence!&rdquo; he wrote on his Truth Social platform. &quot;The next attack will be far worse! Don&#39;t make that happen again,&quot; he added, referring to US strikes against Iranian targets in June. A US naval strike group Trump described as an &ldquo;armada,&rdquo; led by aircraft carrier the USS Abraham Lincoln, is now in Middle East waters, with the president saying it was &ldquo;ready, willing and able to rapidly fulfill its mission, with speed and violence, if necessary.&rdquo; CNN said he was mulling an attack after nuclear talks failed to advance. Iran&#39;s foreign minister, Abbas Araghchi, warned on Wednesday that Tehran would respond immediately and forcefully to any US military operation -- adding that its forces have their &ldquo;fingers on the trigger&rdquo; -- but did not rule out a new nuclear deal. International benchmark Brent crude oil briefly topped $70 a barrel Thursday for the first time since September with a gain of more than two percent.&nbsp;On stock markets, Meta jumped in after-hours trade after the US parent of Facebook and Instagram published quarterly earnings that topped expectations, as revenue grew along with investments in artificial intelligence. <h2 style="line-height: 2;">&#39;Inverse of confidence&#39;&nbsp;</h2>Stephen Innes said the surge in gold indicated deeper structural concerns. &ldquo;After blowing through $5,500 in early Asia, bullion is no longer trading like a commodity. It is trading like a referendum. Not on inflation. Not on rates. On trust,&rdquo; he wrote. &ldquo;Gold is the inverse of confidence. When belief in policy coherence weakens, gold ceases to behave like a hedge and instead acts as an alternative. That is what we are watching now. This is not fear of recession. There is doubt about fiat stewardship.&rdquo; Rising tensions sent oil prices up by more than 1% -- with WTI at its highest since September and Brent at levels not seen since July -- amid supply worries. On equity markets, Hong Kong, Shanghai, Singapore, Mumbai, and Seoul rose, while Tokyo was flat. Sydney, Wellington, Taipei and Bangkok dropped. London and Frankfurt edged up at the open but Paris fell. Manila sank as data showed the Philippines economy grew last year at its slowest non-pandemic rate since 2011. Jakarta tanked 8%, prompting a temporary halt and extending Wednesday&#39;s collapse, which followed index compiler MSCI&#39;s call for regulators to look into ownership concerns.&nbsp; Stocks later pared those losses to trade around 3% lower. MSCI also said it would hold off on adding Indonesian stocks to its indexes or increasing their weighting, while there are concerns it could announce a downgrade from emerging markets to frontier markets, which could spark an outflow of foreign capital. &ldquo;I think this sharp downward pressure may last one or two days,&rdquo; said Hans Kwee, a stock analyst at PasarDana.&nbsp; &ldquo;It was yesterday and today; at most, tomorrow it starts to move sideways. &ldquo;Then next week the market should be more normal.&rdquo; The dollar remained under pressure, even after Treasury Secretary Bessent told CNBC that &ldquo;the US always has a strong dollar policy,&rdquo; a day after Trump appeared to welcome its recent weakness. The Fed&#39;s policy meeting ended with few surprises as boss Jerome Powell said officials were keeping tabs on data. But Matthias&nbsp;Scheiber and Rushabh Amin at Allspring Global Investments said attention was now on Trump&#39;s choice to take the helm when Powell steps down in May. &ldquo;The big focus will remain on the announcement of the new Fed chair, with the race wide open though a general expectation of someone more dovish to succeed Jerome Powell,&rdquo; they wrote in a commentary. Hong Kong-listed property stocks surged on a report that Chinese leaders had rowed back on stringent measures aimed at reining in borrowing, which helped spark a chronic debt crisis in the country&#39;s real estate sector that is still weighing on the economy. Troubled developers soared, with Country Garden up around 17%, Sunac rocketing 30%, and Agile Group 15% higher. <h2 style="line-height: 2;">Key figures at around 0815 GMT&nbsp;</h2>Tokyo - Nikkei 225: FLAT at 53,375.60 (close) Hong Kong - Hang Seng Index: UP 0.5% at 27,968.09 (close) Shanghai - Composite: UP 0.2% at 4,157.98 (close) London - FTSE 100: UP 0.4% at 10,189.97 West Texas Intermediate: UP 1.6% at $64.24 per barrel Brent North Sea Crude: UP 1.5% at $69.43 per barrel Dollar/yen: DOWN at 153.21&nbsp;yen from 153.38 yen on Wednesday Euro/dollar: UP at $1.1974 from $1.1944 Pound/dollar: UP at $1.3829 from $1.3797 Euro/pound: UP at 86.58 pence from 86.56 pence New York - Dow: FLAT at 49,015.60 (close)

Bullion piled on more than $300 at one point to top $5,595 after Trump said Tehran needed to negotiate a deal over its nuclear program, which the West believes is aimed at making an atomic bomb.

Articles tagged with "Gold Prices"

Gold drops sharply as oil-driven rate concerns weaken safe-haven appeal

Gold soars toward $5,600 as Trump rattles sabre over Iran

Gold drops sharply as oil-driven rate concerns weaken safe-haven appeal