Gold Prices Surge Above $4,740 as US-Iran Peace Signals Shake Energy Markets

Gold extended its upward momentum on Thursday, rising above $4,740 per ounce as shifting geopolitical expectations and falling energy prices reshaped broader inflation outlooks.

US-Iran Diplomatic Signals Push Oil Lower

Market sentiment turned following indications that the United States had submitted a one page memorandum of understanding through intermediaries, outlining steps to formally end the conflict and potentially reopen critical shipping routes, including the Strait of Hormuz. The proposal is now under review by Tehran, with an official response expected in the coming days.

The possibility of reduced regional tensions weighed heavily on oil prices, which dropped sharply as traders priced in improved supply stability and lower disruption risk in global energy flows.

Inflation Expectations Ease but Policy Uncertainty Remains

The decline in oil prices helped soften inflation expectations, as energy remains a key driver of global price pressures. Lower inflation outlooks typically reduce pressure on central banks to maintain restrictive monetary policy for extended periods.

However, policy caution remains. Chicago Federal Reserve Bank President Austan Goolsbee noted that inflation has not consistently moved toward the 2% target and has instead shown signs of re-acceleration since the outbreak of conflict. His comments highlight ongoing uncertainty about whether recent disinflation trends can be sustained.