Gold Holds Steady Amid Iran Deal Uncertainty

Gold steadied above $4,500 an ounce on Monday following a volatile week, as efforts to secure a longer-term ceasefire agreement between the US and Iran showed limited signs of progress. Over the weekend, Washington and Tehran exchanged proposals seeking amendments to a draft accord that would extend the ceasefire and reopen the Strait of Hormuz, though it remained uncertain whether the negotiations were moving closer to a resolution. President Donald Trump also reiterated his call for Iran to halt its nuclear program and fully restore the strait’s status as an open international waterway. Gold has faced headwinds since late February as the Middle East conflict drove energy prices sharply higher, fueling concerns about inflationary pressures and the prospect of interest rate hikes. Investors are now awaiting the latest US monthly jobs report later this week, which could offer fresh insight into labor market strength and the likely path of Federal Reserve policy.

Gold increased 2% to 4585.22 USD/t.oz

Gold climbed for a second straight session to $4,580 an ounce on Friday after reports that the US and Iran may extend their ceasefire. However, prices remained on track for a 0.8% monthly decline, pressured by inflation concerns and expectations of prolonged higher interest rates. Negotiations to end the three-month war continued, with reports of a tentative 60-day ceasefire extension to allow formal talks, though President Trump has yet to approve the agreement. Despite potential progress, bullion faced headwinds as disruptions to shipping and energy infrastructure could keep oil prices elevated, maintaining a cautious stance from the Federal Reserve. US inflation data this month showed the fastest rise in three years in April, reinforcing expectations that the Fed will keep rates unchanged well into 2027. Elsewhere, gold demand in India stayed weak due to high prices and import duties, while premiums in top consumer China narrowed amid cautious market sentiment.