(RTTNews) – Gold prices rose more than 1 percent on Friday amid hopes of easing tensions in the Middle East.
Spot gold rose 1.2 percent to $4,432 an ounce, after falling nearly 3 percent in the previous session. However, the precious metal remains on track for weekly losses due to inflation and rate-hike shocks.
The US dollar is benefiting from risk aversion as the Middle East conflict shows no signs of abating, with fresh attacks reported in Iran, Israel and Lebanon.
Israel attacked key infrastructure at several locations inside Iran, while Iranian missiles targeted Israel and the United Arab Emirates.
Regional risks and oil supply concerns remain amid conflicting messages on the status of peace talks between the United States and Iran.
On Thursday, US President Donald Trump said he would delay a threatened attack on Iran’s energy infrastructure and extend his deadline for Tehran to reopen the Strait of Hormuz to April 6, saying talks with Iran were going “very well”.
Trump said Iran has allowed 10 oil tankers to pass through the Strait of Hormuz this week.
Additionally, Treasury Secretary Scott Besant said Thursday that an insurance program aimed at promoting shipping via the waterway will soon begin.
Additionally, Trump issued a stern warning to Iran, saying the US would “keep blowing them up” if no deal is reached.
Media reports suggest that the Pentagon is reportedly considering sending 10,000 additional ground troops to the Middle East.
Elsewhere, Iran’s local media reported that the country is mobilizing more than one million ground troops to fight against the United States.
The US has deployed uncrewed drone speedboats for patrolling as part of its operations against Iran, Reuters reported, as Iran seeks to establish a system of approved passage for ships through the vital waterway.
US 10-year Treasury yields rose to nearly 4.42 percent, raising concerns about the outlook for interest rates and financial conditions.
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