(RTTNews) – Gold prices were slightly higher on Thursday as a stronger dollar and higher Treasury yields eased pressure as geopolitical tensions eased.
Spot gold rose 0.3 percent to $4,268.61 an ounce after falling 1.7 percent on Wednesday on dovish Fed policy and retail sales and housing data released overnight. US gold futures were down more than 2 percent at $4,285.70.
The Federal Reserve held its benchmark interest rates steady on Wednesday, but Chairman Kevin Wersh’s focus on “price stability” signaled a sharp pivot.
On the geopolitical front, multiple reports have revealed that US President Donald Trump and his Iranian counterpart had signed a preliminary agreement to end the 110-day conflict.
The official text of the memorandum of understanding reached over the weekend has been released, which includes an immediate and permanent end to military operations on all fronts, including in Lebanon, the reopening of the Strait of Hormuz and the lifting of the US naval blockade against Iran.
Iran has committed to “reducing” its stockpile of highly enriched uranium, a senior official described as a “significant concession” by Iran. Sanctions relief is tied to the nuclear deal.
Once the MoU is signed, Iran will get exemption for export of crude oil, petroleum products and related banking services.
Israel was not a party to the negotiations or the MOU. All technical details will be worked out in a 60-day negotiation period starting after the signing ceremony scheduled to be held in Switzerland on Friday.
Brent crude futures fell to $78 a barrel as focus focused on the possibility of a rapid reopening of the Strait of Hormuz.
Elsewhere, the Swiss National Bank left its policy rate unchanged at zero percent today despite rising inflation.
The Bank of England is set to keep interest rates unchanged at 3.75 percent today.
Among economic releases, May’s leading indicators, June’s Philadelphia Fed index reading and weekly jobless claims data will headline the New York session.
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