Gold prices climb amid US-Iran truce expectations

Gold prices edged higher as investors evaluated reports of a possible US-Iran ceasefire agreement amid ongoing concerns over inflation and potential US interest rate hikes, News.Az reports, citing Al Jazeera.

Spot gold climbed 0.3 percent to $4,505.57 per ounce by 04:22 GMT, although it remained down around 0.1 percent for the week. US gold futures also rose slightly, gaining 0.1 percent to reach $4,535.90.

Bullion prices had dropped to a two-month low on Thursday before recovering later in the day following reports about an extension of the ceasefire between the US and Iran.

“Yesterday, we saw gold went down to $4,360 and was likely to go down further until the [ceasefire] announcement came, due to which we suddenly saw the reversal of prices. This is where the market continues to be this morning,” said Brian Lan, managing director of GoldSilver Central.

He added that markets are now waiting for the agreement to be officially signed, even if it is currently only awaiting approval from President Donald Trump.

Reports said the United States and Iran reached an agreement on Thursday to extend their ceasefire and ease restrictions on shipping through the Strait of Hormuz.

However, President Trump has not yet approved the agreement, while Iranian state media reported that the deal has not been finalised.

News.Az 

By Nijat Babayev