Gold prices continued to rise following reports of a preliminary agreement between the US and Iran to extend the ceasefire and begin new negotiations regarding the Iranian nuclear program. This was reported by Bloomberg, according to UNN.
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The price of gold rose to around $4,495 per ounce after a 1% increase the previous day. Positive signals regarding de-escalation in the Middle East eased investor fears of a new surge in inflation that could have been caused by a prolonged conflict in the region. According to sources, the US and Iran reached a preliminary agreement to extend the truce for 60 days, but the final decision still requires approval from US President Donald Trump.
At the same time, economic data from the US indicates a slowdown in economic growth. In the first quarter, US GDP grew by 1.6% in annual terms, which was lower than previous estimates, while inflation accelerated to its highest level since 2023.
Analysts note that after a sharp decline at the beginning of the conflict, gold is trading in a relatively narrow range as markets assess the prospects for a stable cessation of hostilities. Since late February, the precious metal has lost nearly 15% of its value, although recent news of diplomatic progress is supporting demand for it as a safe-haven asset.