Gold Surges to One-Month High on US-Iran Peace Deal Hopes

Gold prices surged over 2% on Wednesday to reach a one-month high of $4,164.13 per ounce at 0836 GMT. This marked the highest level since July 7.

The increase in gold prices came as hopes for a US-Iran peace deal tempered some inflation concerns. Investors are awaiting key US jobs data for clues on the Federal Reserve's policy path.

US President Donald Trump said his administration had 'very good discussions' with Iran, fuelling expectations of an imminent end to the five-month conflict.

Market analyst Jamie Dutta noted that increasing signs of a Gulf ceasefire deal are making non-yielding assets like gold more attractive. The US dollar remains under pressure, making greenback-priced metals more appealing to holders of other currencies.