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Economy
Gold prices rose during Asian trading on Wednesday, as falling oil prices following the US extension of the ceasefire with Iran eased concerns about worsening inflation and continued high interest rates.
Spot gold gained 0.9% to $4,755.11 per ounce by 02:25 GMT, after falling on Tuesday to its lowest level since April 13.
US gold futures for June delivery rose 1.1% to $4,772.90, according to Reuters data.
US President Donald Trump said he would extend the ceasefire with Iran indefinitely to allow for more peace talks, hours before the truce was due to expire.
Trump's announcement appeared unilateral, and it was not immediately clear whether Iran or Israel would agree to extend the ceasefire that began two weeks ago.
Edward Mier, analyst at Marix, said: "With the ceasefire extended, markets see a de-escalation of the crisis."
He added: "If the ceasefire ends and hostilities resume, we will see a rise in the dollar and in oil prices and interest rates, which would put pressure on (gold) prices."
Stocks rose, the dollar fell, and oil prices dropped following the ceasefire extension.
Higher crude oil prices can fuel inflation by raising transportation and production costs. While gold is considered a hedge against inflation, rising interest rates make yield-bearing assets more attractive, reducing demand for the yellow metal.
Standard Chartered Bank said in a note: "Price movement remains hostage to Middle East ceasefire news and liquidity needs."
It added: "While we note that the recent rise in prices has been fragile and faces a risk of correction in the short term, we still expect (precious metals) prices to recover, and gold in particular to retest its record levels."
Kevin Warsh, the nominee for Federal Reserve chairman, said on Tuesday that he made no promises to Trump on interest rate cuts, trying to reassure senators considering his confirmation as central bank chief that he would make decisions independently of the White House.
For other precious metals, silver in spot transactions rose 1.5% to $77.84 per ounce, platinum gained 1.5% to $2,067.25, and palladium climbed 1.8% to $1,560.31.
