Gold prices saw a modest rise on Friday as investors assessed reports about a ceasefire agreement between the U.S. and Iran, amid growing concerns about inflation and possible increases in U.S. interest rates. Spot gold increased by 0.4% to $4,512.79 per ounce, as of 0113. The metal has seen a rise of about 0.1% for the week so far. U.S. gold futures rose by 0.2% to $4,543.10. Bullion fell to a two-month low on Thursday but ended the day higher after news emerged about the extension of the U.S.-Iran ceasefire.

The United States and Iran have come to an agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, as reported by sources on Thursday. However, U.S. President Donald Trump has not approved it yet, and Iranian state media indicated that it remains unfinalized. U.S. inflation experienced its fastest increase in three years in April, driven by rising energy prices associated with the Iran war. This development has strengthened economists’ views that the Federal Reserve is likely to keep interest rates steady for an extended duration into the next year.

St. Louis Federal Reserve President Alberto Musalem suggested that the central bank may need to increase its policy rate if inflation does not begin to decline in the next six months. Federal Reserve Bank of New York President John Williams indicated that the current approach of central bank monetary policy is in good harmony with the existing outlook. He expressed his expectation for inflation to stay high in the short term, with pressures expected to ease later in the year.

China’s net gold imports through Hong Kong saw a significant rise of 81.2% in April compared to the previous month, as per the released data. Spot silver rose by 0.7% to $76.17 per ounce, platinum increased by 0.2% to $1,926.18, and palladium climbed by 0.9% to $1,380.94.