Gold edges higher as Iran ceasefire hopes offset inflation fears
Gold prices edged higher on Friday as reports of progress toward a US-Iran ceasefire boosted risk sentiment, though inflation concerns limited gains.
Gold prices edged higher during Asian trading on Friday, recovering from a two-month low as reports of progress toward a US-Iran ceasefire boosted risk appetite, though lingering inflation concerns kept gains in check.
Spot gold rose 0.4% to $4,514.27 per ounce by 02:40 ET, while US gold futures advanced 0.3% to $4,543.75. The precious metal had fallen to its lowest level in two months during the previous session before rebounding 0.8% on reports that Washington and Tehran could resume diplomatic negotiations. The potential easing of geopolitical tensions reduced safe-haven demand for the dollar, providing some support for gold.
For gold and precious metals traders, the interplay between geopolitical risk and inflation expectations remains a key driver. A US-Iran ceasefire could reduce safe-haven flows into gold, but persistent inflation pressures may keep real yields low, supporting the metal. Traders can track these price movements on NowPrice's live gold dashboard to monitor real-time changes in spot and futures prices.
Looking ahead, markets will focus on upcoming US inflation data and Federal Reserve commentary for clues on the interest rate path. A softer inflation reading could reinforce expectations of a rate cut, boosting gold, while a hawkish Fed stance may cap gains. Traders should also watch for any further developments in US-Iran talks, as a breakthrough could trigger a shift in risk sentiment.