Gold Prices Near $4,332 an Ounce After Israel and Iran Agree to End Missile Attacks

SadaNews - Gold prices rise slightly after Israel and Iran agree to halt attacks that disrupted negotiations to end the war in the Middle East.

The price of gold approached $4,332 an ounce at the beginning of trading, after closing the previous session with little change. The commitments from both sides to stop missile attacks came following a call from U.S. President Donald Trump to de-escalate, in his quest for a broader solution to the conflict that has shaken global markets.

As the war enters its fourth month, energy flows through the Strait of Hormuz have been disrupted, oil prices have risen, and concerns about global inflation have increased, heightening the likelihood that central banks will keep interest rates steady or raise them, posing a barrier to precious metals.

Gold has lost 18% of its value since the beginning of the Iran War

Gold prices sharply declined in the early days of the conflict and are still about 18% lower than their levels just before the war, after erasing gains since the beginning of the year on Friday, following a strong jobs report in the United States, which bolstered expectations of the Federal Reserve raising interest rates this year.

Analysts from Citigroup, including Kenny Hu, stated in a note: "In the long term, we maintain a positive outlook on gold, but we believe it carries very high risks in the near term for anyone without broad loss limits and long-term investment horizons," while keeping their price target for gold at $5,000 an ounce over the next six to twelve months.

Silver Prices

Silver prices have also been recorded near $67 an ounce.