Key Takeaways

• Gold extends rally: Spot gold rose 1% to $4,736.61 per ounce, while U.S. gold futures for June climbed 1.1% to $4,746.86 — building on Wednesday’s 3%+ surge.
• Biggest daily jump since March: Wednesday’s surge marked the largest single-day gain in over a month.
• Iran deal driving the rally: The White House is nearing a memorandum of understanding with Tehran to end the war, per Axios.
• Trump optimism: The president said he believes Iran wants an agreement.
• Oil collapse a tailwind: Crude prices plunged more than 7% on Wednesday, easing inflation fears that had been weighing on bullion.
• Yields drop: U.S. Treasury yields and the dollar fell, boosting appetite for non-yielding gold.
• ING’s take: “The potential easing in energy prices gives the Fed more room to cut rates, which is positive for gold.”
• Dollar at pre-war levels: The DXY hovers near levels seen before the conflict erupted.
• Jobs data Friday: Investors await April nonfarm payrolls for clues on the Fed’s rate path.
• Silver soars: Silver prices jumped 1.9% to $78.79 per ounce.
• Platinum gains: Platinum advanced 0.4% to $2,072.55 per ounce.
• Copper steady: LME copper traded flat at $13,391.33 per ton.

Gold prices climbed for the third consecutive session on Thursday, as growing hopes for a U.S.-Iran peace agreement eased some inflation concerns, while a weaker dollar also bolstered demand for the yellow metal.

Spot gold rose 1% to $4,736.61 per ounce by 02:55 ET (06:55 GMT). U.S. gold futures for June advanced 1.1% to $4,746.86.

The yellow metal climbed more than 3% on Wednesday — its biggest daily gain since late March — as oil prices tumbled sharply on expectations that tensions in the Middle East could begin to ease.

Gold Supported by U.S.-Iran Deal Hopes and Lower Oil Prices

Market sentiment improved after Axios reported that the White House was nearing a deal with Iran on a memorandum of understanding aimed at ending the conflict.

Iran said it was reviewing the proposal, while U.S. President Donald Trump said he believed Tehran wanted an agreement.

Oil prices had plunged more than 7% on Wednesday after reports of progress in negotiations, although crude steadied on Thursday as investors awaited further clarity on the talks.

The prospect of lower energy prices helped reduce fears of a prolonged inflation shock, pulling U.S. Treasury yields and the dollar lower and boosting appetite for non-yielding bullion.

“The potential easing in energy prices gives the Fed more room to cut rates, which is positive for gold,” ING analysts said in a research note.

Traders Await U.S. Jobs Data

The U.S. Dollar Index edged down 0.1% in Asian hours after slipping 0.4% overnight, hovering near pre-war levels.

Investors are now awaiting Friday’s U.S. non-farm payrolls report for further clues on the Federal Reserve’s interest-rate path after recent comments from Fed officials highlighted concerns that the Middle East conflict could fuel inflation and disrupt supply chains.

Among other precious metals, silver prices rose 1.9% to $78.79 per ounce, while platinum edged up 0.4% to $2,072.55 per ounce.

Benchmark copper futures on the London Metal Exchange traded flat at $13,391.33 a ton, while U.S. copper futures were also muted at $6.20 a pound.