Gold Rebounds as Traders Assess Possible US-Iran De

Gold prices rebounded Friday as traders weighed reports of a possible US-Iran agreement to extend the ceasefire and resume talks on Tehran's nuclear program.

Axios reported that Washington and Tehran agreed on a 60-day memorandum extending the ceasefire and reopening the Strait of Hormuz while nuclear negotiations continue between both sides.

Oil prices declined after the report, with WTI crude trading near $87 per barrel, though elevated energy costs continued to support inflation concerns and limit gains in gold prices.

The US dollar stayed firm as uncertainty over the proposed agreement persisted, while recent PCE inflation data and hawkish Federal Reserve comments supported expectations for prolonged higher interest rates.

At the time of writing, XAU/USD was trading at $4,538, up 0.98%.