(RTTNews) – Gold jumped nearly 1 percent on Tuesday to $4,600 an ounce, but was headed for a monthly loss of about 13 percent, its worst monthly performance since October 2008.
Positive comments from Federal Reserve Chairman Jerome Powell helped traders overcome rate-hike expectations, sending spot gold up nearly 1 percent to trade at $4,560 an ounce. US gold futures for June delivery were up 0.7 per cent at $4,588.
The dollar was on track for its best month since October 2024 as the Middle East conflict rocked energy markets and attracted investors to the world’s primary reserve currency.
Bond yields fell and a risk-off mood returned to the market after Fed Chair Powell downplayed inflation risks.
Powell said on Monday that long-term inflation expectations remain “well anchored” and that there is no need to raise rates in the near term because of the oil shock.
Powell also said the current turmoil in the private credit sector appears unlikely to cause a broader systemic event.
Traders were also reacting to reports that the Trump administration is ready to end US military operations against Iran, even if the Strait of Hormuz remains largely closed.
Instead, the administration plans to achieve its main objectives — weakening Iran’s naval and missile capabilities and resuming normal operations in the strait, the Wall Street Journal reports.
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