XAU/USD rises as easing geopolitical tensions reduce inflation fears, lifting demand for the safe-haven asset.
Gold prices (XAU/USD) advanced to a one-week high near $4,700 in early Asian trading Thursday. The rally extends as optimism over a potential US-Iran peace deal eases inflation concerns, boosting investor appetite for the precious metal.
The move follows a period of heightened geopolitical uncertainty, which had previously weighed on risk sentiment. Analysts note that reduced tensions could lower energy prices, further dampening inflationary pressures and supporting gold’s appeal as a hedge.
Market reaction remains muted but positive, with traders monitoring developments in the Middle East for further direction.