Gold climbed back above $4,300 an ounce on Thursday, erasing losses from the previous session after President Donald Trump signed an interim agreement to end the conflict with Iran and reopen the Strait of Hormuz. According to reports, the deal calls for the rapid reopening of the key shipping lane and the lifting of sanctions on Iranian oil exports, while talks on Tehran’s nuclear program and potential additional economic incentives are set to continue.
The rebound followed a sharp decline in the previous session, when gold dropped nearly 2% on Wednesday after the US Federal Reserve signaled growing support for interest rate hikes this year. Fed Chair Kevin Warsh offered no specific guidance on the timing of the next policy move but emphasized that inflation has remained above the central bank’s 2% target for several years, reiterating the Fed’s commitment to restoring price stability.
