(RTTNews) – Gold prices rose on Wednesday as the dollar weakened and bond yields dropped on hopes of an easing of the US-Iran conflict.
Spot gold jumped a little more than 2 percent to $4,565.18 an ounce, while U.S. gold futures rose 3.6 percent to $4,595.67.
Risk sentiment on the dollar index improved after US President Donald Trump said the US and Iran were “talking right now” and they “want to make a deal”, while oil prices fell more than 5 percent.
While Tehran rejected the US President’s claim of talks, several media reports suggested that efforts toward a diplomatic solution had intensified.
According to the New York Times report, America has sent a 15-point plan to Iran to end the war in the Middle East.
Israel’s Channel 12 revealed that Washington was pursuing a one-month ceasefire under a mechanism being developed by Steve Witkoff and Jared Kushner.
Axios said the US and a group of regional mediators are discussing the possibility of holding high-level peace talks with Iran by Thursday, but they are still awaiting a response from Tehran.
Iran has told the UN Security Council and the International Maritime Organization that “non-hostile vessels” can transit the Strait of Hormuz with Tehran’s consent.
Meanwhile, Federal Reserve (Fed) Governor Michael Barr on Tuesday said interest rates could remain unchanged for some time before any further cuts, adding that cutting rates would require evidence that inflation is falling in a sustainable manner.
Elsewhere, Bank of Japan (BOJ) board members shared their views on the monetary policy outlook.
According to BOJ minutes of the January meeting, many board members felt the need to continue raising interest rates to address rising inflation pressures and the impact of the weak yen on prices.
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