28.05.202614:31:36UTC+00Gold Trim Losses on Middle East Ceasefire Hopes

Gold prices pared earlier losses on Thursday to trade roughly flat near $4,450 an ounce, as investors weighed tentative progress in Middle East peace efforts against persistent inflation concerns. Axios reported that US and Iranian negotiators have agreed on a 60-day memorandum of understanding aimed at extending the ceasefire and launching talks on Iran’s nuclear program, though the deal still awaits final approval from President Trump. Geopolitical tensions remain elevated, however, with ongoing exchanges between the US and Iran, and Israel resuming strikes on Hezbollah targets in Lebanon despite a fragile ceasefire.

At the same time, bullion is hovering near a two-month low, pressured by higher energy prices that are stoking inflation fears and dampening expectations for imminent interest rate cuts. Federal Reserve officials have adopted a cautious stance: Governor Lisa Cook endorsed keeping rates on hold for now while leaving the door open to further hikes if inflation reaccelerates, and New York Fed President John Williams warned that inflation could soon approach 4% on a headline basis and 3% for core measures.