PRECIOUS METALS | Gold Futures Rise Amid Easing Middle East Tensions

Gold futures prices have increased as tensions in the Middle East ease, according to Jin10. Vivek Dhar from the Commonwealth Bank of Australia highlighted in a research report that U.S. President Donald Trump announced a temporary halt to plans for providing security passage for ships through the Strait of Hormuz, which has helped reduce tensions. Since gold prices hit an intraday high of $5,422 per ounce on March 2, the movement of gold futures has been inversely correlated with the level of tension in the Middle East. Dhar added that the upward momentum for gold prices may be driven by hopes for a ceasefire in the Middle East, market pricing for interest rate cuts due to high energy prices affecting global growth, and concerns over the independence of the Federal Reserve.