Gold prices steady as Trump expresses optimism on US-Iran peace
What's the story
Gold prices were steady on Friday, after President Donald Trump expressed optimism over a permanent ceasefire between the US and Iran. The news comes amid a war that has disrupted markets and raised inflation concerns. In early trading, spot gold rose 0.1% to $4,796.05 an ounce while silver gained 0.5% to $78.83 an ounce.
Diplomatic developments
Trump says Iran has accepted terms it long resisted
Trump announced that Iran has accepted terms it had long resisted, including reopening the Strait of Hormuz. However, European and Gulf Arab leaders have predicted that a peace deal between the US and Iran could take up to six months to finalize. The US President also announced a 10-day ceasefire between Israel and Lebanon, which was later confirmed by Israeli PM Benjamin Netanyahu.
Market impact
Traders speculate central banks may keep interest rates unchanged
The recent decline in oil prices has eased some of the inflationary pressures that have been weighing on gold since the war began nearly seven weeks ago. This has led traders to speculate that central banks may keep interest rates unchanged for a longer period or even raise them, which could be a headwind for non-yielding bullion.