FX.co ★ Gold Gains on Rising US-Iran Tensions, Soft US CPI Data

Gold prices edged upward, nearing $3,370 per ounce on Thursday, as rising tensions between the United States and Iran spurred demand for safe-haven assets. Additionally, weaker-than-anticipated US consumer inflation figures have increased expectations for potential interest rate cuts by the Federal Reserve. The US government took a precautionary step by ordering the departure of embassy staff from Baghdad, following threats from Iran to target US bases should negotiations regarding its nuclear program collapse. Meanwhile, market participants are now anticipating a 50 basis point rate reduction by the Fed before the year's end. They are also paying close attention to the Producer Price Index (PPI) data set to be released later today, which could provide more insights prior to the US central bank’s policy meeting next week. On the trade front, President Trump announced on Wednesday that an agreement had been achieved to restore a tentative ceasefire in the ongoing US-China trade conflict. This development came after US and Chinese negotiators established a framework addressing tariff rates. Furthermore, Trump indicated a readiness to extend the July 8 deadline for finalizing trade talks before higher US tariffs come into effect.