Published on 26/04/2022 at 15:53
(Agefi-Dow Jones)–Gold prices rose on Thursday, supported by hopes of de-escalation of tensions in the Middle East and a decline in oil prices that eases inflation concerns.
At around 3:30 pm, the gold futures contract for delivery in June gained 0.4%, at $4,842.40 per ounce, according to MarketWatch data.
Investors are closely monitoring the geopolitical situation in the Middle East. “Reports of a possible extension of the current ceasefire [between the US and Iran, ed.] and a second round of negotiations have fueled hopes of a resolution and could help improve confidence,” commented Tony Sage, CEO of Critical Metals.
Although the Strait of Hormuz remains closed, “a diplomatic solution could ease inflationary tensions related to rising energy prices, which could weigh on US Treasury bond yields and strengthen the appeal of non-yielding assets like gold,” he added.
A strong demand for safe-haven assets is expected to keep gold prices at a high level throughout this year, with an average of around $4,990 per ounce, compared to an average of $3,435 in 2025, which was a record, as stated in Export Development Canada’s latest report on global economic outlook.
The Canadian export credit agency also supports that gold prices will peak in 2026, driven by the decline in US interest rates by the end of the year, and as uncertainty diminishes and high prices curb demand, they will gradually decrease in 2027 to settle at an average of $4,689 per ounce.
Agefi-Dow Jones The financial newswire
Liked this article? Share it with your friends using the buttons below.
