Gold Edges Higher As Dollar, Yields Dip On US-Iran Peace Deal Hopes

Spot gold jumped 0.7 percent to $4,775.57 an ounce while U.S. gold futures for June delivery were up 0.6 percent at $4,796.62.

The dollar weakened to hit a six-week low and government bond yields dipped as the U.S. blockade of Iran’s ports officially came into force and reports suggested that the U.S. and Iran are arranging a second round of negotiations to end their conflict.

Discussions between Washinton and Tehran are ongoing and another round of negotiations remains possible, with Turkey reportedly working to bridge differences between both sides, according to CNN.

The U.S. administration remains cautiously optimistic that a diplomatic breakthrough is still achievable, and both sides could consider extending the ceasefire deadline to allow additional time for negotiations, it was said.

According to reports by the New York Times and the Wall Street Journal, Tehran proposed suspending uranium enrichment for up to five years, an offer rejected by Washington which insisted on a 20-year freeze.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.