WASHINGTON (dpa-AFX) - Gold prices regained ground on Wednesday following the previous session's slump, as Middle East tension cooled off, with investors now turning their focus to the Fed's plans on interest rates.
Gold tumbled by around 1.7% on Tuesday following the news of a ceasefire between Israel and Iran.
Front Month Comex Gold for June delivery gained $9.70 (or 0.3%) to $3,327.10 per troy ounce today.
Front Month Comex Silver for June delivery gained 38.40 cents (or 1.1%) to $36.085 per troy ounce today.
The attacks that Israel initiated on Iran on June 12th (Operation Rising Lion) and the subsequent retaliatory attacks from Iran came to a halt yesterday, with President Donald Trump announcing that a ceasefire had been reached between both countries.
Today, Trump stated that the ceasefire is going on 'very well.'
Investors have shifted their focus to the second day of US Fed Reserve Chair Jerome Powell's congressional testimony speech. Yesterday, he had emphasized the need to observe the effects of tariff along with inflation and employment data before making a call on monetary policy and interest rates.
Today, data released by the US Commerce Department revealed that sales of new single-family homes had plunged by 13.7% in May, sharply below expectations.
The US GDP and employment data are due to be released on Thursday and the Price Consumption Expenditure is coming up on Friday.
Analysts are awaiting these reports to get a sense of which way the economy is moving while they anticipate a rate cut only in September.
Despite the US Dollar getting weaker, gold has backed away from the recent highs though not fallen sharply.
Notably, even with the required momentum and potential, gold did not touch new highs during this 12-day war period.
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