Gold climbs above $4,550 on US‑Iran deal hopes
Gold price (XAU/USD) rises to near $4,570 during the early Asian trading hours on Monday. The precious metal attracts some buyers on weaker US Dollar (USD) after the reports that the United States (US) and Iran are closing in on a deal that would reopen the Strait of Hormuz.
Bloomberg reported on Sunday that Washington and Tehran have signaled progress in talks to end the war, even as US President Donald Trump said he won’t “rush” into an agreement. Last week, US Secretary of State Marco Rubio stated that there were “good signs” that an agreement to end the conflict is in sight, but warned any such deal would be “unfeasible” if Iran pursues measures to permanently control shipping through the critical waterway.
Uncertainty over a deal between the US and Iran fuels growing fears that prolonged restrictions on shipping through the Strait of Hormuz will damage global economic growth.
Traders will closely watch the release of the US Personal Consumption Expenditures (PCE) - Price Index report, which is due later on Thursday. Any signs of hotter inflation in the US could reinforce a potential rate hike from the US Federal Reserve (Fed) and weigh on the USD-denominated commodity price.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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