(RTTNews) – Gold rose on Tuesday, extending its recovery from a six-month low as falling oil prices helped ease concerns about the outlook for inflation and interest rates.
Spot gold jumped 0.8 percent to $4,342.37 an ounce, while US gold futures were up 0.3 percent at $4,364.51.
Brent crude futures remain near $82 a barrel as reports suggest US President Trump could issue an initial deal to end the war with Iran before Friday.
The specific terms of the agreement remain unclear, but Trump assured that the Strait of Hormuz will be “fully open” on Friday, the same day as the signing ceremony for the framework agreement between Washington and Tehran to end their war in the Middle East.
If media reports are to be believed, the US-Iran ceasefire is likely to be extended for 60 days, with the countries set to use that window to negotiate over Iran’s nuclear enrichment and disposal of its highly enriched uranium.
The dollar remained near a 10-day low as the US Federal Reserve’s two-day policy meeting begins today.
The US central bank is widely expected to keep rates unchanged on Wednesday under new Chairman Kevin Wersh, despite concerns over sticky inflation.
Warsh’s inaugural press conference, outlining his views on inflation, jobs and the US economic outlook, could provide additional clues on the future path of US interest rates.
Elsewhere, the Bank of England is set to keep the base rate at 3.75 per cent at a meeting on Thursday.
Earlier today, the Bank of Japan raised its interest rates to 1 percent, the highest since 1995, as it battles inflation caused by the Iran war.
In Australia, the country’s central bank kept its key interest rate unchanged for the first time this year after three consecutive hikes.
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