Gold prices climbed at the close of Tuesday’s trading, while silver posted a jump of more than 5%, supported by a weaker dollar and remarks by the U.S. president about the possibility of resuming negotiations with Iran this week.
Gold futures for June delivery rose by 1.73%, or $82.70, reaching $4,850.10 per ounce. Meanwhile, silver futures for April delivery increased by 5.12%, or $3.868, to $79.391 per ounce.
This performance came alongside a decline in the U.S. dollar, as the U.S. president, Donald Trump, announced that talks aimed at ending the war with Iran could resume in Pakistan within the next two days.
In another development, official data showed that U.S. producer prices rose less than expected in March, with service costs remaining stable, despite ongoing inflationary pressures driven by higher energy prices linked to the war with Iran.
Although gold is considered a hedge against inflation, its appeal may weaken in a high-price environment since it does not yield returns. Currently, traders estimate a 33% probability of U.S. interest rate cuts this year, compared to earlier expectations of two cuts before the outbreak of the war.
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