ING’s Ewa Manthey and Warren Patterson say Gold remains highly sensitive to geopolitical developments around the US–Iran ceasefire and conflict in the Middle East. They describe volatile, headline‑driven trading, with safe‑haven demand offset by shifting risk sentiment and Dollar moves, and argue that clarity on ceasefire durability will be crucial for Gold’s ability to regain upside momentum.

Geopolitics drive volatile gold trade

"Conflicting geopolitical signals are driving choppy price action in gold, with safe‑haven demand offset by shifts in risk sentiment and dollar moves."

"Earlier in Wednesday’s session, gold had climbed above $4,800/oz alongside global equities as a two‑week truce between the US and Iran briefly lifted risk appetite and eased fears of a broader economic shock."

"Gold pared earlier gains after Iran’s parliamentary speaker said last night a temporary ceasefire with the US had been violated."

"Reports of continued fighting, including Iranian strikes on Gulf states, and ongoing disruption to traffic through the Strait of Hormuz kept geopolitical risks elevated. Uncertainty also persists over whether the ceasefire extends to Israel’s campaign in Lebanon."

"Looking ahead, gold is likely to remain headline‑driven in the near term, with further clarity on the durability and scope of the ceasefire key for determining whether prices can regain upside momentum."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)