Gold prices edge up.
Gold prices ticked higher in Asian trade on Wednesday after sharp losses in the prior session, as a weaker U.S. dollar offered some support, even as a ceasefire between Israel and Iran dampened demand for safe-haven assets.
Spot Gold rose 0.2% to $3,329.93 an ounce, while Gold Futures for August gained 0.3% to $3,344.70/oz by 02:16 ET (06:16 GMT).
Bullion fell over 1% on Tuesday after President Donald Trump announced that a ceasefire between Iran and Israel had come into effect.
Israel-Iran truce pressures gold
President Trump, on late Monday, declared a multi‑stage ceasefire between Israel and Iran, and urged that neither party should violate it.
Despite the announcement of a ceasefire between Israel and Iran, concerns remained over how long the truce would hold. Just hours after declaring the agreement, President Donald Trump took to social media to accuse both sides of failing to uphold their commitments.
European stocks edge higher.
European stocks edged higher Wednesday, with sentiment helped by the fragile ceasefire between Israel and Iran appearing to hold, while investors digested comments from Federal Reserve Chair Jerome Powell.
At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.2%, the CAC 40 in France climbed 0.2% and the FTSE 100 in the U.K. rose 0.2%.
Israel-Iran ceasefire holds, so far
The phased ceasefire between Israel and Iran, announced by U.S. President Donald Trump late Monday, has had a shaky start, with Trump having to condemn both nations for violating the deal soon after its declaration.
Even so, the announcement has raised hopes that the 12-day conflict marked by deadly airstrikes may finally be winding down. Attention now turns to a gathering of NATO leaders in The Hague later in the session, with European allies hoping a pledge to hike defence spending will prompt the U.S. president to reconfirm his commitment to the alliance.
Oil rises 2% as investors assess ceasefire.
Oil prices climbed 2% on Wednesday as investors assessed the stability of a ceasefire between Iran and Israel, while support also came from market expectations that interest rate cuts could happen soon in the United States, the world’s largest economy.
Brent crude futures rose $1.31, or 2%, to $68.45 a barrel at 0750 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.24 cents, or 1.9%, to $65.61.
Brent settled on Tuesday at its lowest since June 10 and WTI since June 5, both before Israel launched a surprise attack on key Iranian military and nuclear facilities on June 13.
Prices had rallied to five-month highs after the U.S. attacked Iran’s nuclear facilities over the weekend.
“Geopolitical risk premiums have been reduced and will take a backseat for now…Fed Chair Powell’s first testimony to Congress (yesterday) has hinted at a slight chance of bringing forward the first rate cut of 2025 to July…which should offer some form of floor on oil prices from the demand side,” said OANDA senior market analyst Kelvin Wong.
Technical factors drove price increases during the session, he added.
Lower interest rates typically spur economic growth and demand for oil.
A slew of U.S. macroeconomic data released overnight including on consumer confidence showed possibly weaker than expected economic growth in the world’s largest oil consumer, bolstering expectations of Federal Reserve rate cuts this year. Futures point to nearly 60 basis points worth of easing by December.
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