August gold futures climb to $4,560.40 as markets bet on a 60-day truce extension easing Middle East supply risks.
Gold August futures edged higher in early Friday trading, reaching $4,560.40 per troy ounce after opening at $4,527.60, a marginal 0.1% dip from Thursday’s close. The uptick follows reports that President Trump may sign a 60-day truce extension with Iran, fueling optimism for a resolution to the conflict and the reopening of the Strait of Hormuz for unrestricted energy shipments.
The Federal Reserve’s April Personal Consumption Expenditures Index hit a three-year high of 3.8%, driven partly by the Iran war’s impact on commodity prices. Inflation pressures have reinforced expectations that the Fed will hold rates steady at its mid-June meeting. Year-over-year, gold prices remain up 37.9%, though gains have moderated from January’s 95.6% peak.
Investors are closely monitoring geopolitical developments, with few concrete details available beyond the potential truce extension. The market’s reaction reflects cautious optimism amid persistent supply chain concerns.