Gold climbs to two‑week peak as dollar weakens; markets await Trump speech

Gold prices climbed to a two-week high on Thursday, supported by a weaker dollar and signs of Middle East war de-escalation that may ease inflation pressures, with markets awaiting comments from U.S. President Donald Trump.

FUNDAMENTALS

* Spot gold was up 0.7% at $4,790.29 per ounce by 0034 GMT, the highest level since March 19. U.S. ‌gold futures edged ⁠0.1% higher ⁠to $4,816.10.


* Trump will address the nation in a televised speech at 9 p.m. EDT (0100 GMT) on Wednesday as his administration signals it is moving toward a possible exit from the month-long war with Iran.

* The United States will be "out of Iran pretty quickly" and could return for "spot hits" if needed, Trump told Reuters on Wednesday, hours before his scheduled address.

* The ⁠dollar index ‌slipped for a third consecutive session, hovering near one-week low level, and making greenback-priced bullion more affordable for holders of other currencies.

* ⁠The metal dropped 11% in March after the onset of the conflict in Iran on February 28, which has driven oil prices higher and added to inflation pressures, clouding the Fed's path on monetary policy.

* Fed rate-cut expectations remain low through most of 2026, with markets largely pricing in no change until a modest 27% chance of a cut emerges at the December meeting.

* Despite gold's ‌appeal during periods of inflation and geopolitical tension, higher interest rates tend to curb bullion's attractiveness by increasing the opportunity cost of holding the non-yielding asset.

* St. ⁠Louis Federal Reserve President Alberto Musalem said on Wednesday there is no need for the U.S. central bank to change its interest rate stance right now in the face of rising inflation risks.

* Holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust, rose 0.35% on Wednesday from Tuesday.

* Spot silver rose 0.7% to $75.62, platinum gained 0.4% to $1,970.60 and palladium added 0.3% to $1,476.75.

DATA/EVENTS (GMT)

1230 US International Trade $ February

1230 US Initial Jobless Clm March 28