Khaberni - Gold prices rose on Thursday after falling to their lowest levels in two months earlier in the session, with a decline in the dollar and oil prices following a report that the United States and Iran are working on extending the ceasefire.
The spot price of gold surged 1.1% to $4504.07 an ounce after touching its lowest level since late March.
The U.S. futures contracts for gold closed up 1.1% at $4532.40 an ounce.
An informed source said that the United States and Iran have reached a memorandum of understanding to extend the ceasefire for 60 days, which requires the approval of U.S. President Donald Trump.
The dollar index fell 0.2%, making gold priced in it less expensive for holders of other currencies. Oil prices declined after the report.
Data showed that the U.S. personal consumption expenditures price index rose 3.8% over the twelve months ending in April, in line with expectations. The personal consumption expenditures price index increased 0.4% on a monthly basis in April after rising 0.7% in March.
The minutes of the Federal Reserve meeting held on April 28-29, details of which were published last week, indicated that an increasing number of officials are open to the possibility of having to raise interest rates.
Gold remains under pressure since the outbreak of the U.S.-Israeli war on Iran in late February, amid inflation fears. Despite its appeal as a safe haven, gold's performance declines with rising interest rates, as investors turn to yield-generating assets.
Data showed that China's net imports of gold via Hong Kong jumped 81.2% in April compared to the previous month.
For other precious metals, the spot price of silver rose 1.3% to $75.60 an ounce, platinum settled at $1918.95, and palladium fell 1.4% to $1371.52.
