Gold prices climbed back above $4,800 an ounce on Thursday, recovering earlier losses as markets weighed prospects of renewed diplomatic engagement between the United States and Iran.
The rebound comes as investors assess reports that Washington and Tehran are considering extending a fragile ceasefire to allow more time for negotiations, raising hopes of reduced geopolitical risk and easing inflation pressures.
Attention is now focused on a possible second round of talks, which are expected to address reopening the Strait of Hormuz and Iran’s nuclear enrichment programme. The waterway remains effectively closed under a dual blockade, keeping energy supply risks elevated.
Gold has been supported in recent weeks by heightened Middle East tensions, which drove demand for safe-haven assets. However, sentiment has shifted intermittently on signs of diplomatic progress, with easing inflation expectations reducing pressure for tighter monetary policy.
Despite Thursday’s recovery, bullion remains nearly 9% lower since the conflict began, reflecting volatile swings driven by developments in the US–Iran standoff and broader risk sentiment.
