XAU/USD climbs near $4,575 on optimism over US-Iran negotiations easing geopolitical tensions and pressuring the USD.
Gold prices advanced to near $4,575 in early Asian trading Tuesday, supported by a softer US Dollar amid optimism over US-Iran peace talks. President Trump indicated negotiations for an interim deal to extend the ceasefire and reopen the Strait of Hormuz were progressing, though key details remain unresolved.
The prospect of a deal has weighed on oil prices, indirectly boosting gold as an inflation hedge. Market focus now shifts to Thursday’s US April PCE Price Index, which could influence Fed rate expectations and further impact USD-denominated commodities.
Analysts noted that progress in US-Iran talks has raised hopes for reduced geopolitical risks, contributing to gold’s upward momentum.