The price of a gram of 21-carat gold in the Syrian market stabilized on Tuesday, maintaining the same levels it recorded in yesterday's trading on Monday.
The official bulletin issued by the "General Authority for Precious Metals Management" revealed that the selling price of a gram of 21 carats reached 17750 Syrian pounds, while the purchase price stabilized at 17450 Syrian pounds.
The same bulletin set the selling price of a gram of 18 carats at 15250 new pounds, compared to 14950 pounds for the purchase price.
Gold Declines Globally on Diplomacy and Bond Markets
In the global market, the price of the precious metal fell in the global markets, giving up most of its gains in the previous session, in conjunction with investors following the developments of the ceasefire file and the chances of calm between the United States and Iran.
The immediate deliberations were affected by US President Donald Trump's decision to postpone the expected military strike against Tehran to make way for Gulf mediation (Saudi Arabia, Qatar, and the UAE), which was reflected in the risk appetite and withdrew part of the safe haven momentum.
According to Bloomberg, spot gold fell 0.5% to $4,544 an ounce on the London Stock Exchange, recording an overall decline of about 14% since the outbreak of the recent geopolitical war in the region, and silver fell 2.2% to settle at $76.05, in parallel with the decline of platinum and palladium.
Inflation pressures, dollar index hamper gains
Bloomberg reported that U.S. Treasury yields are hovering near multi-year highs, driven by continued rise in global energy prices that continue to fuel inflation fears, reducing the attractiveness of gold as an investment asset that does not yield a fixed return amid rising borrowing costs.
The dollar index rose 0.2%, adding new financing burdens that raise the cost of acquiring the yellow metal for buyers holding other currencies.
Vasu Menon, a strategist at Overseas Banking Corp ., said that fluctuations in oil prices and bond yields will continue to weigh on gold prices in the short term, despite reports from Goldman Sachs that expect prices to recover soon as major central banks ramp up their purchases, and consider gold as a historic and useful hedge tool against uncertainty and structural changes globally.