Gold rises as Iran ceasefire talks ease inflation fears

Gold gained as diplomatic efforts toward a resolution of the Iran war helped ease inflation concerns, even as tensions persist around the Strait of Hormuz.

Bullion rose as much as 1% to nearly $4,839 an ounce, recovering most of the previous session’s losses, News.Az reports, citing Bloomberg.

The U.S. and Iran are reportedly considering a two-week extension of a ceasefire to allow more time for negotiations aimed at ending the conflict that has disrupted global markets, according to a person familiar with the matter.

However, maritime traffic through the Strait of Hormuz remains heavily constrained, with the U.S. blocking Iranian vessels and Tehran limiting passage for most other ships.

The two sides have reached an “in-principle agreement” to pursue diplomacy following inconclusive talks in Pakistan over the weekend, the Associated Press reported. U.S. President Donald Trump has downplayed the likelihood of renewed fighting, telling Fox Business that the nearly seven-week conflict is “close to over.”

Brent crude oil futures held steady near $95 a barrel on Thursday, while global equities hit record highs and the U.S. dollar index edged lower.

Easing crude prices in recent days have helped reduce inflation concerns, lowering expectations that central banks will keep interest rates elevated for longer periods.

News.Az 

By Nijat Babayev