Gold prices rallied over 1% on Thursday, recouping losses from the previous session, as crude oil prices fell after the signing of the US-Iran peace deal. The gains in gold prices came followed a sharp decline of 1.7% in the previous session after the hawkish US Federal Reserve policy raised expectations of interest rate hikes later this year.
Spot gold price rose 1.5% to $4,322.41 per ounce, while US gold futures for August delivery fell 0.9% to $4,343.10. Spot silver price rose 2.2% to $69.51 per ounce, after falling 3% in the previous session.
Spot silver price gained 2.2% to $69.51 per ounce, after falling 3% in the previous session.
The United States and Iran released the text of their interim agreement, which extends the ceasefire announced in April by another 60 days to allow the two sides to negotiate a final truce.
The US Federal Reserve kept interest rates unchanged on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the US central bank’s 2% target.
Nine of the central bank’s 19 policymakers now believe they will need to raise the policy rate this year.
Meanwhile, treasury yields rose and the US dollar extended gains on rising bets of US Fed rate hike later this year amid increasing inflation concerns.
Among other commodities, platinum prices gained 1.8% to $1,767.53, and palladium prices rallied 2% to $1,338.67.
(With inputs from Agencies)
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