Gold Prices Soar to Two-Week High on Iran Deal Hopes and Fed Rate Pause

Gold prices surged to a two-week high on August 5th as investors grew optimistic about a potential Iran nuclear deal and the Federal Reserve's decision to pause its interest rate hiking cycle.

The U.S. dollar index retreated from recent highs, making gold cheaper for foreign buyers and boosting demand for the metal.

Market participants have pared back bets on further Fed rate increases following softer-than-expected economic data and comments from Fed officials hinting at a more cautious approach.