Gold prices rose more than 3 percent on Wednesday, hitting their highest level in over a week, as hopes of a US-Iran peace deal weakened the dollar and oil prices, reports Reuters.
Spot gold jumped 3.4 percent to $4,708.86 per ounce by 1133 GMT, its highest since April 27. US gold futures for June delivery also rose 3.3 percent to $4,721.
The rise comes as Iran signaled willingness to reach a “fair and comprehensive” agreement with the United States to end the conflict, while US President Donald Trump said there had been “great progress” in the negotiations.
Trump also announced a brief pause in operations to escort vessels through the Strait of Hormuz, raising expectations of easing tensions in the region.
Analysts said a potential deal could help stabilize global shipping and reduce inflationary pressures, which may allow the US Federal Reserve to cut interest rates in the coming year.
Global stocks also advanced as oil prices declined on expectations that supply disruptions in the Middle East could ease.
A weaker dollar made gold more affordable for investors holding other currencies, further supporting prices.
Investors are now awaiting key US economic data, including private payroll figures later in the day and non-farm payroll data later this week, to gauge the Federal Reserve’s policy outlook.
Among other precious metals, spot silver rose 6.4 percent to $77.46 per ounce, platinum gained 4.2 percent to $2,034.08, and palladium climbed 3.9 percent to $1,543.11.
Bd-Pratidin English/ AM
