(RTTNews) – Gold prices rose more than 1 percent on Friday amid hopes of easing Middle East tensions.
Spot gold surged 1.2 percent to $4,432 an ounce after falling nearly 3 percent in the previous session. The precious metal, however, remains on track for a weekly loss on inflation and rate-hike jitters.
The U.S. dollar is benefiting from risk aversion as the Middle East conflict showed no signs of easing, with fresh strikes reported in Iran, Israel and Lebanon.
Israel struck key infrastructure at multiple locations inside Iran, while Iranian missiles targeted Israel and the UAE.
Regional risks and oil supply concerns persist amid conflicting messaging on the status of peace talks between the United States and Iran.
On Thursday, U.S. President Donald Trump said he would delay a threatened strike on Iran’s energy infrastructure and extend his deadline for Tehran to reopen the Strait of Hormuz until April 6, adding talks with Iran were going “very well.”
Trump said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz this week.
Additionally, Treasury Secretary Scott Bessent said Thursday that that an insurance program aimed at boosting shipping through the waterway would begin soon.
At the same time, Trump issued a stark warning to Iran, saying the U.S. will “keep blowing them away” if a deal is not reached.
Media reports suggest that the Pentagon is reportedly considering sending up to 10,000 additional ground troops to the Middle East.
Elsewhere, Iran’s local media reported that the country is mobilizing more than one million ground troops to fight against the United States.
The U.S. has deployed uncrewed drone speedboats for patrols as part of its operations against Iran, Reuters reported as Iran seeks to establish a system of approved passage for ships through the crucial waterway.
U.S. 10-year Treasury yields have surged to around 4.42 percent, raising concerns about the outlook for interest rates and financial conditions.
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