Gold Holds Firm Above $4,500 On US-Iran Peace Deal Hopes, Soft US Data

(RTTNews) - Gold held firm above $4,500 an ounce on Friday, the dollar headed for a small weekly loss on improved risk sentiment in markets, and oil prices slipped to a one-month low amid investor optimism that the Middle East conflict is inching toward an end and that the reopening of the Strait of Hormuz may ease disruptions to energy flows.

Softer U.S. GDP and inflation data released overnight also drew investors firmly back into safe-haven assets.

Spot gold climbed 0.7 percent to $4,523.25 an ounce, while U.S. gold futures were up half a percent at 4,553.80.

Media reports suggested that the U.S. and Iran have reached a temporary agreement to extend their ceasefire by 60 days, resume unrestricted shipments through the Strait of Hormuz, and begin negotiations over Tehran's nuclear program.

According to the tentative agreement, pending final approval from U.S. President Donald Trump, Iran would not be able to impose tolls on ships transiting the Strait of Hormuz, while the U.S. would gradually lift its sea blockade on Iranian ports.

Commenting on the final status of an interim deal, U.S. Treasury Secretary Scott Bessent said, "the teams have been going back and forth" and President Trump had set out three "red lines" for negotiations.

The three conditions are that Iran must hand over its highly enriched uranium, abandon its nuclear weapons development, and guarantee free passage through the Strait of Hormuz.

Bessent stressed that there can be no deal without these conditions and Trump will not sign a deal that is disadvantageous to the United States.

Vice President JD Vance cautioned that it remains uncertain whether or when an agreement with Iran could be finalized.

In economic news, overnight data showed the PCE price index rose by 0.4 percent sequentially in April and by 3.8 percent year-over year.

The annual rate of core PCE price index ticked up to 3.3 percent from 3.2 percent in March.

Consumer spending crept up in April, raising concerns the Federal Reserve would be forced to lift interest rates.

However, separate data showed the U.S. economy grew at a 1.6 percent annual rate in in the first quarter, slower than previously estimated.