Gold prices edged higher on Friday, holding near the $4,500 level, as investors weighed easing geopolitical risks following reports of a possible US–Iran ceasefire framework against uncertainty over inflation and interest rates.
Spot gold rose to around $4,514.59 per ounce, up about 0.4% on the day, after recovering from earlier volatility. The metal has fallen about 2.3% over the past month, though it remains up roughly 37% year-on-year, according to trading data.
Sentiment was shaped by reports that Washington and Tehran are exploring a preliminary agreement that could include a 60-day extension of their ceasefire, renewed talks on Iran’s nuclear programme, and potential steps toward easing tensions around the Strait of Hormuz.
The prospect of reduced geopolitical risk has eased concerns over further oil-driven inflation spikes, which had previously strengthened expectations of tighter monetary policy.
However, uncertainty persists, with US President Donald Trump yet to approve the proposed terms, while Vice President JD Vance has cautioned that negotiations remain fragile and at an early stage.
Gold has been under pressure since late February as earlier energy-led inflation fears weighed on sentiment, though expectations that the US Federal Reserve will keep interest rates unchanged this year have helped stabilise prices.
