(RTTNews) – Gold held steady on Friday but eyed its fourth weekly gain as oil prices softened on growing optimism over a potential deal to end the Iran war.
Spot gold edged up by 0.1 percent to $4,795.14 an ounce and was up more than 1 percent so far this week. U.S. gold futures were up 0.2 percent at $4,818.89 an ounce.
The dollar headed for its second weekly loss, reflecting improving appetite for riskier assets.
U.S. President Donald Trump has indicated that a second round of talks could take place this weekend, warning that fighting may resume if no deal is finalized.
Oil prices were down more than 3 percent over the week as Israel and Lebanon agreed to a 10-day ceasefire, fueling optimism on the prospect of a long-term peace deal in the Middle East.
Trump has expressed optimism about securing a permanent ceasefire with Iran, while announcing the deployment of additional 10,000 troops to bolster U.S. military presence in the region.
Trump claimed that Tehran had agreed to hand over its enriched uranium, provide “free oil” and reopen the Strait of Hormuz, adding he might go to Pakistan if a deal is reached.
Trump also said Chinese President Xi Jinping has assured him that Beijing will not supply weapons to Iran. China has firmly rejected the allegations and warned that any economic retaliation such as tariff increases would trigger countermeasures.
Iran’s state-owned broadcaster IRIB claimed the U.S. leader was “building castles in the air.”
Amid inflation concerns and uncertain policy signals, investors await clarity on how the upcoming negotiations between the United States and Iran will take shape.
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