Gold Climbs on Ceasefire Hopes as Oil and Dollar Slide

Gold finished the week on a higher note, marking its second consecutive gain after reports that the United States and Iran may have agreed to extend their ceasefire. Spot prices rose 0.6%, closing at $4,519.64 an ounce, while August U.S. gold futures edged up 0.4% to $4,550.00.

The rally came on the back of speculation that a new U.S.-Iran deal could prolong the truce by 60 days and lift shipping restrictions through the Strait of Hormuz. President Trump has not yet signed off on the agreement, and Iranian state media indicates the pact has not been finalized.

Technical support levels gave the metal a boost, and the optimism surrounding the ceasefire extension helped pull oil prices and the U.S. dollar lower—factors that typically support bullion. The dollar index is on track for a weekly decline, making dollar‑denominated metals more affordable for overseas buyers.

Despite the short‑term lift, the “higher‑for‑longer” interest‑rate narrative remains in play. Rising U.S. inflation—spiking at its fastest pace in three years in April, largely due to energy costs linked to the Iran conflict—keeps expectations that the Federal Reserve will maintain elevated rates well into next year. Higher rates increase the opportunity cost of holding non‑yielding gold, and spot gold has fallen more than 2% over the month.

In related news, demand for gold in India remains subdued amid higher prices and import duties, while premiums in China have narrowed as sentiment stays cautious. Spot silver slipped 0.2% to $75.51 an ounce, though it is poised for a monthly gain. Platinum held steady at $1,923.55, and palladium rose 0.6% to $1,375.57 but remains down over 9% for the month.