Gold Prices Rise Amid Anticipation of US-Iran Agreement

Gold prices edged up on Friday as investors focused on reports about a potential agreement between the United States and Iran, amid growing concerns over inflation and the prospect of US interest rate hikes, according to Reuters.

At 0422 GMT, spot gold rose by 0.3% to $4505.57 per ounce, although the precious metal has declined approximately 0.1% since the beginning of the week.

US gold futures increased by 0.1% to $4535.90.

On Thursday, gold prices fell to their lowest level in two months before closing higher following reports of an extension of the ceasefire between the US and Iran.

Brian Lan, managing director at Gold Silver Central, stated, "Yesterday we saw gold drop to $4360, and it was likely to continue falling until news of the ceasefire emerged, which caused a sudden price reversal. This is the situation the market remains in this morning."

He added, "Markets are now awaiting the signing of the agreement, even if it depends solely on Trump's signature."

The US dollar reached its highest level in a week amid renewed tensions in the Strait of Hormuz.

US inflation rose in April at its fastest pace in three years, driven by higher energy prices due to the war with Iran, reinforcing economists' expectations that US interest rates will remain unchanged until next year.

John Williams, president of the Federal Reserve Bank of New York, said that the central bank's monetary policy is on the right track given the forecasts, adding that he expects inflation to remain elevated in the near term with easing pressures later in the year.

Regarding other precious metals, spot silver held steady at $75.61 per ounce, while palladium prices increased by 0.5% to $1375.63, with both metals on track for weekly gains.

Meanwhile, platinum declined by 0.4% to $1914.95, heading toward a weekly loss.

Separately, the Israeli military issued a warning for the evacuation of the Lebanese village of Ain Qana.