Why Gold Prices Remain Stable Amid US-Iran Peace Deal Optimism

BENGALURU — Gold held largely steady on Friday and remained on track for a fourth straight weekly gain, as growing hopes for a US-Iran peace deal eased fears of higher inflation and elevated interest rates.

Spot gold eased 0.1 percent to $4,784.72 per ounce, but was up about 1 percent for the week. US gold futures for June also fell 0.1 percent to $4,805.20.

A 10‑day ceasefire between Lebanon and Israel took effect on Thursday, and President Donald Trump said the next US‑Iran meeting may happen over the weekend. Investors are watching closely for concrete progress.

“Any progress or extension of the current fragile ceasefire could further calm oil markets and inflation fears, potentially unlocking more upside for gold,” said Tim Waterer, chief market analyst at KCM Trade.

The US dollar headed for a second weekly drop, making gold more affordable for holders of other currencies. Oil prices also fell, reducing concerns that higher energy costs would stoke inflation and keep global interest rates higher for longer. Gold has dropped more than 8 percent since the Iran war began in late February, largely on those fears.

Traders now see a 27 percent chance of a Federal Reserve rate cut in December — down from expectations of two cuts before the war.

Meanwhile, Indian banks have halted gold and silver import orders, with tons of metal stuck at customs awaiting formal government authorization. Domestic demand in India remains modest due to high prices ahead of the Akshaya Tritiya festival.

Spot silver rose 0.3 percent to $78.61 per ounce, heading for a fourth weekly gain. Platinum and palladium also rose, each on track for a third straight weekly gain.

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