Gold edged higher as traders assessed US President Donald Trump's claim of an "energy ceasefire" between Russia and Ukraine, even as risks of a widening conflict in the Middle East raised inflation concerns. Bullion traded near $4,200 an ounce, after rising 1.3% last week. Trump said the truce between the warring nations was effective immediately.
Benchmark Brent crude fell 1.2%. Previously, he'd demanded Ukrainian President Volodymyr Zelenskyy halt attacks on Russian oil refineries, and announced that Moscow had agreed to release diesel to global markets, easing worries over a fuel supply crunch. Meanwhile, Saudi Arabia's main airport came under renewed attack from Houthi rebels on Sunday, just a day after a strike on the facility killed 12 people and heaped pressure on the Middle East's biggest economy.
The Houthis said the attacks were a response to "Saudi aggression," including a strike on the airport in the Yemeni capital of Sanaa. The attack on the King Khalid International Airport on Saturday, that also injured more than 300 people, marked the deadliest event in Saudi Arabia since the Iran war began. That raised the risk of a widening conflict in the region and higher energy prices, making a case for tighter monetary policy.
The precious metal has lost some appeal since the US-Iran war erupted in late February. Rising energy costs and the risk of global inflation due to the conflict have prompted some central banks to raise interest rates, which is bearish for non-yielding gold. Spot gold edged 0.3% higher to $4,206.86 an ounce as of 8:30 a.m. Singapore time, while silver was 0.6% higher at $60.99.
Platinum edged higher and palladium advanced. The Bloomberg Dollar Spot Index ticked lower.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing