Gold Extends Recovery On US-Iran Peace Deal Hopes

(RTTNews) - Gold traded higher on Friday, after having rebounded sharply from a six-month low in the previous session.

Spot gold rose 0.3 percent to $4,223.34 an ounce while U.S. gold futures were up more than 3 percent at $4,244.47.

The dollar found its footing after falling in the previous session. Treasury yields fell further amid easing inflation concerns after U.S. President Donald Trump said a "great settlement" to end the conflict with Iran has been reached, and that a signing ceremony could take place in Europe as early as this weekend, with Vice President JD Vance attending on his behalf.

Trump also said the Strait of Hormuz would officially reopen once the Iran deal was signed and that Iran will never have a nuclear weapon.

Tehran, however, said no final deal has been approved and that disputes over frozen funds and Strait of Hormuz security remain unresolved.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei dismissed reports regarding the timing and location of any potential agreement as premature, clarifying that Tehran will not compromise on what it describes as its "red lines." It was said significant obstacles continue to stand in the way of a breakthrough.

"The relevant authorities must reach a final decision regarding the text of the understanding and any potential agreement in detail. Once, a final decision is reached, we will issue an official statement," Esmael Baqaei said.

Elsewhere, Israeli Prime Minister Benjamin Netanyahu said Israel is not a party to the memorandum of understanding, while welcoming assurances from Trump that the final agreement with Iran would include the removal of enriched material, the dismantling of enrichment infrastructure, limits on missile production, and the cessation of Iran's support for its terrorist proxies in the region.