Gold Soars as US-Iran Peace Hopes Ease Inflation Worries

Gold prices surged more than 2% on Wednesday to a one-month high as hopes of a US-Iran peace deal tempered inflation concerns. This comes after US President Donald Trump said his administration had 'very good discussions' with Iran during all-day negotiations on Tuesday, fueling expectations of an imminent end to the five-month conflict.

The spot gold price climbed 2.3% to $4,168.34 per ounce by 11:13 GMT, its highest level since July 7. U.S. gold futures rose 1.8% to $4,227.40.

Market analyst Jamie Dutta at trading platform Nemo.money attributed the rise in gold prices to increasing signs of a Gulf ceasefire deal, which is easing inflation worries and making non-yielding assets like gold more attractive.