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26.05.202623:56:23UTC+00Gold Stabilizes on Iran Deal Developments

Gold held above $4,500 an ounce on Wednesday, stabilizing after coming under pressure earlier in the week, as investors remained cautiously optimistic that the US and Iran could still reach a peace agreement despite renewed tensions in the Middle East. President Donald Trump said talks to extend the ceasefire and reopen the Strait of Hormuz were ongoing, while US Secretary of State Marco Rubio cautioned that any final deal could still take several days to conclude. At the same time, the US military reported conducting self-defense strikes in southern Iran, and Iran’s Revolutionary Guard claimed it had fired at an F-35 fighter jet and several drones after they allegedly entered Iranian airspace. Nevertheless, gold prices remain nearly 15% below the levels seen at the outset of the conflict, as fears of an energy-driven inflation shock have reinforced expectations that major central banks may keep monetary policy tighter for longer.

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