Gold prices rise 1% to $4,049.47 as diplomatic progress between Washington and Tehran eases inflation fears and Fed rate-cut expectations.
Spot gold climbed 1% to $4,049.47 an ounce early Tuesday, extending gains above the $4,000 mark. Investors parsed renewed U.S.-Iran diplomatic efforts, which eased concerns over energy-driven inflation and potential Federal Reserve policy shifts.
The advance followed a rebound from last week’s dip, with markets balancing geopolitical risks against signs of de-escalation. Crude prices retreated after two sessions of gains, as reports of mediation offset Houthi threats of a naval blockade. A proposed 10-day ceasefire further supported sentiment.
Silver surged 2.6% to $57.87, while platinum rose nearly 1% to $1,611.09, tracking gold’s rally amid softer USD and Treasury yields.