FX.co ★ Gold Advances as Iran Talks Reduce Inflation Concerns

Gold climbed toward $4,820 an ounce on Thursday, rebounding from a 1.1% decline in the previous session, as progress toward a diplomatic resolution of the Iran conflict eased inflation worries despite ongoing tensions in the Strait of Hormuz. Washington and Tehran are reportedly considering extending a two-week ceasefire to allow further negotiations, with both sides signaling a willingness to pursue diplomacy after inconclusive talks in Pakistan. Even so, shipping through Hormuz remains tightly constrained, with the US blockading Iranian vessels and Iran restricting broader maritime traffic. President Donald Trump said the war is “close to over,” which helped bolster risk sentiment across financial markets. Meanwhile, softer oil prices have tempered inflation concerns and reinforced expectations that the Federal Reserve will leave interest rates unchanged, though uncertainty over monetary policy and geopolitical risks continues to support safe-haven demand for gold.