Gold prices moved slightly higher on Friday as investors weighed reports of a possible US-Iran ceasefire agreement amid growing concerns about inflation and the prospect of further US interest rate increases.
Spot gold gained 0.3% to reach $4,505.57 per ounce by 04:22 GMT, although the precious metal remained marginally lower for the week overall. Meanwhile, US gold futures edged up 0.1% to $4,535.90 per ounce.
The bullion market had earlier slipped to its lowest level in two months on Thursday before rebounding later in the day following reports suggesting an extension of the ceasefire between the US and Iran.
The media reported Brian Lan, managing director of GoldSilver Central, as saying that gold prices had fallen to around $4,360 before the ceasefire-related reports triggered a sharp recovery in the market.
He noted that traders are now awaiting formal confirmation of the agreement, which is reportedly pending approval from US President Donald Trump.
According to media reports, the US and Iran reached an understanding to extend their ceasefire and ease restrictions on shipping through the Strait of Hormuz.
However, while the reports boosted market sentiment, Iranian state media indicated that the agreement has not yet been finalised.
