Gold Prices Rise Amid Easing Inflation Fears and Geopolitical Tensions

Gold prices settled 0.25% higher at 148,858 on Thursday, buoyed by easing concerns over inflation and expectations that the U.S. Federal Reserve may not need to tighten monetary policy as aggressively as previously feared.

The optimism surrounding negotiations involving Iran and Oman over the Strait of Hormuz reduced geopolitical risk premiums, while expectations for a September U.S. rate hike eased to 55% from 67% two days earlier.

Federal Reserve Bank of San Francisco President Mary Daly reiterated support for maintaining current interest rates as policymakers assess incoming inflation data.

Investors are now closely watching the upcoming U.S. nonfarm payrolls report after the latest ADP employment data indicated slower private-sector job growth.