Gold Notches Another Record High

Gold climbed above $4,700 an ounce on Wednesday, rising for a second consecutive session as signs of de-escalation in the Middle East pushed oil prices lower, easing inflation concerns. According to Axios, the White House is nearing a one-page Memorandum of Understanding with Iran to end the conflict and begin nuclear negotiations, the closest the parties have been to a deal since the conflict started. The proposal would require Iran to accept enhanced UN inspections, halt nuclear enrichment for 12–15 years, potentially transfer highly enriched uranium abroad, and limit underground facilities. In return, the US would gradually lift sanctions and unfreeze billions in Iranian assets. Earlier, US President Donald Trump paused escalation plans, citing progress in talks. Gold has faced significant selling pressure since the war began, as soaring energy costs fueled inflation fears and reinforced expectations that central banks might keep interest rates elevated or tighten policy further.

Gold climbed above $4,600 an ounce on Wednesday, advancing for a second straight session as signs of de-escalation in the Middle East pushed oil prices lower, helping to alleviate inflation concerns. Defense Secretary Hegseth said the ceasefire established nearly a month ago remains intact, while Secretary of State Rubio confirmed that offensive operations have ended as Washington pivots toward safeguarding shipping routes in the Strait of Hormuz. President Trump also announced a temporary pause in a US-led effort to assist stranded vessels in exiting the strait, allowing time to gauge whether a deal with Iran to end the conflict can be reached, although the blockade on ships traveling to and from Iranian ports will stay in place. Gold has faced significant selling pressure since the onset of the war, as soaring energy costs fueled inflation fears and reinforced expectations that central banks may keep interest rates elevated for longer or potentially tighten further.

Gold prices climbed to $4,570 per ounce on Tuesday after hitting a more than one-month low on Monday, as investors tracked escalating Middle East tensions and their potential to fuel inflation and reshape interest rate expectations. A fragile truce in the region faced new pressure after US-Iran clashes in the Gulf, with both sides vying for control of the Strait of Hormuz, effectively closed since the war began. US Defense Secretary Pete Hegseth warned on Tuesday that President Donald Trump could resume "major combat operations" against Iran if necessary. Soaring energy costs threaten to push inflation higher and delay central bank rate cuts. While gold is a traditional inflation hedge, its appeal dims in high-rate environments, as non-yielding assets lose their shine. Meanwhile, the IMF chief cautioned that a prolonged conflict into 2027, with oil at $125 per barrel, could trigger a "much worse" global economic outcome.