Gold Gains as Dollar Weakens, Oil Slips Amid Hopes of US-Iran Peace Deal

Gold prices moved higher on Thursday, supported by a softer U.S. dollar and declining oil prices as investors evaluated growing optimism around a potential resolution to the conflict involving the United States, Israel, and Iran. Spot gold rose 0.7% to $4,464.69 per ounce, while U.S. gold futures gained 0.6%.

Market sentiment improved after Israel and Lebanon agreed to implement a ceasefire, raising hopes for broader peace negotiations in the region. Adding to the positive outlook, the U.S. House of Representatives approved a resolution aimed at preventing further American involvement in the conflict with Iran, signaling increasing political pressure to end hostilities.

Meanwhile, easing oil prices and comments from New York Federal Reserve President John Williams helped support gold. Williams said inflation risks linked to the Middle East conflict are unlikely to be long-lasting and reiterated that there is currently no need to adjust interest rates. Analysts believe gold’s long-term upward trend remains intact, although price movements may remain volatile in the coming months.

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