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Gold (XAUUSD) & Silver Price Forecast: Truce Eases Tensions — Will $4500 Hold or Collapse?
Gold and Silver Ease as Markets Assess Fragile Middle East Ceasefire
Gold and silver took a bit of a step back on Thursday after shooting up on news of a conditional two-week truce between the United States and Iran. The deal – which trades a temporary halt in air strikes for tankers being allowed back through the Strait of Hormuz – has taken the edge off the immediate threat of a major supply disruption but still has investors looking over their shoulders about the whole thing.
Analysts point out that yes, the truce has knocked the acute geopolitical risk premium off the gold price but still, you’re getting a lot of mixed signals out there – there’s all these reports of tensions still simmering and now we’re not even sure if this thing is going to stick. On the other hand, the central banks continue to be big buyers – especially China, which has now been ramping up its gold purchases for 17 months straight – that’s all helping to keep gold prices supported.