Gold Pares Gains as Traders Assess Progress on War Truce

A one kilogram gold bar at Gold Investments Ltd. bullion dealers arranged in London, UK, on Thursday, April 3, 2025. Gold retreated on Thursday, after notching its latest record, after President Donald Trump triggered tumult on global markets with sweeping "reciprocal" tariffs. Photographer: Chris Ratcliffe/Bloomberg Photo by Chris Ratcliffe /BloombergArticle content(Bloomberg) — Gold trimmed gains as traders weighed the progress on a truce deal between the US and Iran, despite the effective closure of the strategic Strait of Hormuz. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBullion gave up most early gains after the semi-official Iranian Students’ News Agency reported that Iran’s planned Hormuz toll will be paid via Iranian banks, injecting further uncertainty to the situation in the Middle East. Bond yields pushed higher, weighing on gold as it doesn’t pay interest. Oil remained above $93 a barrel while US equities retreated from record highs.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentPakistan stepped up efforts to ensure the US and Iran prolong a ceasefire beyond its official expiry date next week, to allow more time to negotiate a lasting peace deal. Optimism surrounding a ceasefire in the region has been growing in recent days, with many stock exchanges reversing their wartime losses and even hitting record highs. That’s despite extensive damage to Gulf energy infrastructure and the effective halt of the Strait of Hormuz.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentGold will find support from market volatility as long as President Trump is in the White House, ACG Metals Ltd. Chairman and Chief Executive Officer Artem Volynets told Bloomberg TV. Recent geopolitical events may spur central bank gold-buying as they shift away from the US dollar, he said.Article contentThe swap market is still betting that the US Federal Reserve will hold rates steady this year, a view supported by comments from Fed Bank of St.

Louis President Alberto Musalem and Fed Bank of Cleveland President Beth Hammack. Article content“Given the fragile ceasefire and switch to focus on real yields, gold is not yet out of the woods,” Suki Cooper, global head of commodities research at Standard Chartered Plc, wrote in a note. With the competing risks of inflation and slower growth, “the policy response will be key,” she said, as gold “transitions away from moving in-step with risk assets.”Article contentArticle contentGold has fallen about 9% since the start of the war, with a liquidity squeeze in the early weeks of fighting leading investors to offload holdings and cover losses elsewhere. In a sign that buyers are coming back to the market, bullion-backed exchange-traded funds have added around 25 tons so far this month, after cutting around 94 tons in March, according to a Bloomberg tally.Article contentSpot gold was 0.3% higher at $4,805.30 an ounce at 11:30 a.m. in New York. Silver and platinum slipped, while palladium rose.

The Bloomberg Dollar Spot Index was up 0.1%.Article contentCopper traded on the London Metal Exchange rose 0.2% to $13,278 a ton. Other base metals except lead were higher.Article contentTrending The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Why first-time homebuyers are still treading cautiously this spring Real Estate Cineplex gauging interest from potential buyers Retail & Marketing Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Why first-time homebuyers are still treading cautiously this spring Real Estate Cineplex gauging interest from potential buyers Retail & Marketing