Gold prices rose amid U.S.-Iran talks - Reuters
Gold prices surged by more than 1% amid expectations of progress in negotiations between the U.S. and Iran. The market was further supported by a weaker dollar and falling oil prices. Investors are actively reacting to shifting geopolitical expectations, Reuters reports.
Global markets reacted with a sharp move toward gold following news of possible breakthroughs in negotiations between the US and Iran, which immediately affected investor sentiment and the overall assessment of risks in the global economy.
According to Reuters, the spot price of gold rose 1.1% to $4,557.46 per ounce, while U.S. futures gained 0.8% to $4,558.80, indicating an active market reassessment amid political statements.
The price movement is largely linked to signals from the U.S., where Donald Trump stated there was no rush to conclude a deal with Iran, but at the same time acknowledged that the parties had reportedly come close to agreeing on a framework deal that could affect the situation in the Strait of Hormuz.
Against this backdrop, the dollar remained near its weekly lows, making gold cheaper for foreign buyers and further boosting demand, as precious metals traditionally rise during periods of currency weakness and geopolitical uncertainty.
At the same time, falling oil prices have dampened inflation expectations, which has also affected the markets, as lower inflation alters expectations regarding interest rates, and this directly impacts the appeal of gold as a non-yielding asset.
Analysts note that the situation remains sensitive to any new statements from Washington and Tehran, and investors continue to closely monitor the progress of the negotiations, which could either reinforce the upward trend or abruptly reverse it.
U.S. President Donald Trump stated that Washington does not intend to rush into an agreement with Iran, despite progress in the negotiations.
Iranian state media reacted to U.S. President Donald Trump’s statement regarding alleged agreements on opening the Strait of Hormuz, calling it “incomplete and untrue.”
The U.S. reacted strongly to Iran’s plans to introduce a toll system for passage through the Strait of Hormuz, stating that this is unacceptable and could derail any negotiations. Washington considers this strategic waterway critically important and will not allow Tehran to exert commercial or political control over it.
As a reminder, Cuba has restored its power grid following a massive blackout.
Trump also confirmed the U.S. intention to intervene in Cuba.
