(May 25): Gold rose on Monday as signs that the US and Iran were closing in on a deal that would reopen the Strait of Hormuz tempered inflation concerns.
Bullion was trading around US$4,564 an ounce, after falling 0.7% last Friday. Negotiations on the precise language of the deal were ongoing and it may take several days for both sides to get final approval, US officials told reporters on Sunday. President Donald Trump said on social media he won’t “rush” into an agreement.
Earlier, US Secretary of State Marco Rubio had said there may be “some good news” regarding Hormuz in the coming hours, as Iran and Washington pressed ahead with peace negotiations.
Gold had declined on Friday after Federal Reserve Governor Christopher Waller warned the energy shock from the Iran war could fuel inflation, ramping up bets on monetary tightening.
Bullion has traded within a fairly narrow range since falling sharply in the early days of the Iran war, as investors weigh higher rates against the prospect of a high-inflation, low-growth scenario. Bullion is down about 14% since the conflict began in late February.
Spot gold was up 1.2% at US$4,564.09 an ounce at 6.50am in Singapore. Silver was 3% higher at US$77.80. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed.
See also: Gold steadies as traders weigh prospects of US-Iran peace deal
Uploaded by Jason Ng
