Gold experienced an increase exceeding 1% on Thursday, recovering losses incurred in the prior session, as oil prices declined following the signing of an interim agreement between the U.S. and Iran aimed at concluding their conflict. Spot gold increased by 1.5% to $4,322.41 per ounce as of 0102, following a decline of 1.7% on Wednesday. U.S. gold futures for August delivery decreased by 0.9%, settling at $4,343.10. The United States and Iran disclosed the text of their interim agreement on Wednesday, with U.S. President Donald Trump warning of a resumption of attacks and the potential targeting of Iranian officials should they not fulfil their obligations.

The 14-point agreement prolongs the ceasefire initiated in April by an additional 60 days, facilitating negotiations between the two parties for a conclusive truce. Oil prices declined, undoing the increases observed on Wednesday following Trump’s assertion that he could recommence his bombing campaign should Iran’s leaders “not behave”. The Federal Reserve maintained interest rates on Wednesday, yet policymakers anticipate an increase in borrowing costs later this year due to rising concerns regarding inflation remaining above the U.S. central bank’s 2% target.

Nine of the central bank’s 19 policymakers now anticipate the necessity of raising the policy rate within this year, as indicated by projections released on Wednesday. Major stock indexes declined, bond yields increased, and the U.S. dollar continued to strengthen on Wednesday following the Fed’s projections, which indicated that officials anticipate a rise in borrowing costs later this year due to growing inflation concerns. Spot silver increased by 2.2% to $69.51 per ounce, platinum experienced a rise of 1.8% to $1,767.53, while palladium saw an uptick of 2% at $1,338.67.