Gold prices rose above $4,400 an ounce on Friday, after a sharp decline in the previous session, following US President Donald Trump's decision to extend the deadline given to Iran to reach an agreement to end the war.
Trump announced he would refrain from targeting Iranian energy facilities until April 6, a move that brought some calm to markets after nearly a month of escalating tensions.
He also noted that Iran had allowed a number of oil tankers to pass through the Strait of Hormuz this week, describing it as a positive gesture.
In response, Iran reiterated its rejection of the multi-point American proposal to end the conflict and presented its own conditions, which included recognition of its control over the Strait of Hormuz.
Gold had fallen by about 3% during Thursday's session, amid continued doubts about the possibility of reaching a ceasefire agreement in the near term.
More broadly, gold and other metals have come under strong selling pressure recently, with rising energy prices and escalating tensions in the Middle East fueling inflation fears and increasing expectations of interest rate hikes by major central banks.
📌 Summary
Gold rose above $4,400, supported by the postponement of escalation, but continued uncertainty, inflation fears, and expectations of interest rate hikes are still weighing on the overall price trend.