Gold Surges to One-Week High on Hopes of US-Iran Accord

Spot gold climbed 2.8 percent to $4,685.23 an ounce by 2:10 p.m. EDT, marking its strongest level since April 27. US gold futures closed at $4,694.30, also up 2.8 percent, as optimism grew around a potential US‑Iran peace memorandum.

The US dollar index slipped 0.4 percent, making gold cheaper for holders of other currencies. Peter Grant, senior metals strategist at Zaner Metals, said the prospect of a deal eased short‑term pressures on gold, lowered oil prices and reduced inflation concerns, though he warned markets would still react to Middle East developments.

Iran confirmed it was reviewing a new US proposal that could lead to a one‑page memorandum ending hostilities in the Gulf, while more complex matters such as its nuclear program remain unresolved. The news pushed Brent crude down to roughly $100 a barrel, easing the inflationary impact of high oil prices and lessening the pressure on central banks to keep rates elevated. Investors now look ahead to Friday's US employment report, which will test the resilience of the economy and the Fed's stance on monetary policy.

Other precious metals also rallied: spot silver rose 6 percent to $77.16 per ounce, platinum gained 4.7 percent to $2,044.00, and palladium added 3.3 percent to $1,535.00.