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Investors assess the Israel-Hamas deal as gold holds above $4,000.

The gold price held above $4,000 on Thursday as investors analyzed the Israel-Hamas truce deal. Meanwhile, broader geopolitical, economic and political uncertainty, along with expectations of U.S. interest rate cuts, sustained the bullish sentiment.

As of 832 GMT, spot gold was unchanged at $4,035.70 an ounce. U.S. Gold Futures for December Delivery fell 0.4% to $ 4,055.20.

On Wednesday, the price of gold reached a new record high, reaching $4,059.05.

Silver has also been catching up to the gold rally, and is now up 0.7% at $49.21 an ounce after reaching a record high of $49.57 per ounce on Wednesday.

Nikos Tzabouras is a Senior Market Analyst with Tradu.

The path to new highs remains wide open.

U.S. president Donald Trump announced a ceasefire deal and hostage agreement between Israel and Hamas as part of the first phase in his plan to end the war in Gaza, which has claimed the lives of more than 67,000 and changed the Middle East.

The U.S. Dollar Index rose by 0.1% and hovered near a high of two months, making bullion priced in dollars more expensive for buyers from overseas.

Gold's rise has been attributed to geopolitical factors, such as the Middle East conflict and the war in Ukraine. Also, ETF flows, U.S. interest rate cuts, and tariff-related economic uncertainty have contributed.

The yellow metal is set to have the biggest annual gain since 1979, with a 53% increase in the past year.

According to minutes from the Federal Reserve's September 16-17 meeting, released on Wednesday, officials acknowledged that the risks facing the U.S. employment market were sufficiently high to justify a rate reduction, but they remained cautious due to stubborn inflation.

The markets are pricing in a cut of 25 basis points each for October and December.

UBS stated in a report that "the ongoing US government shutdown" has given the gold market a boost, along with mounting fiscal concerns in Japan & France due to recent leadership changes.

Gold that does not yield is a good investment in low interest rate environments and times of geopolitical and economic uncertainty.

Lukman Otunuga is a senior research analyst with FXTM. He said that if risk sentiment continues improving, gold prices may fall in the short term as investors rush to riskier assets.

Silver is up over 70% this year. It has benefited from the same factors that have driven gold's rally, as well as the tightness of the spot market.

Palladium, which has been at a two-year high, rose 0.7%, to $1460.14. Platinum fell by 0.2%, to $1660.55.

(source: Reuters)