Gold prices experienced an uptick on Thursday, buoyed by declining crude oil prices and a softer dollar, as investors evaluated the revitalised hopes for a resolution to the U.S.-Israeli conflict involving Iran. Spot gold increased by 0.7% to $4,461.09 per ounce, as of 0218. U.S. gold futures for August delivery increased by 0.5%, reaching a price of $4,487.90. The dollar eased, making greenback-priced bullion more affordable for holders of other currencies. “Gold’s gains remain significantly influenced by fluctuations in oil prices and the strength of the dollar. It only moves higher when they pull back, making it highly dependent on positive U.S.-Iran headlines for any sustained momentum,” said Tim Waterer.

The Trump administration announced on Wednesday that Israel and Lebanon have reached an agreement to implement a ceasefire, thereby raising expectations for a more comprehensive resolution to the ongoing conflict involving Iran. The Republican-led U.S. House of Representatives approved a resolution on Wednesday aimed at obstructing U.S. President Donald Trump’s continuation of military actions against Iran, indicative of increasing apprehension among party members regarding the ongoing three-month conflict.

Oil prices eased in early trade on Thursday, as the ceasefire between Lebanon and Israel bolstered optimism regarding a U.S.-Iran peace deal. Heightened oil prices have the potential to expedite inflationary pressures and maintain elevated interest rates for an extended period. Gold is perceived as a safeguard against inflation; however, elevated interest rates generally exert downward pressure on the non-yielding metal.

New York Federal Reserve President John Williams indicated that he does not foresee persistent upside risks to inflation stemming from the conflict in the Middle East and emphasised that there is currently no necessity to alter U.S. monetary policy. “I don’t think we’ve seen the end of the bull run, but it is clearly time for a shakeout in general. So I anticipate choppy trade as we head ⁠into the year end, with a slight upwards bias of around $5,000,” said Matt Simpson. Spot silver rose 0.6% to $73.13 per ounce, platinum gained 0.7% to $1,872.11, and palladium added 0.9% to $1,313.51.