Gold prices recovered from a two-month low following a tentative 60-day ceasefire extension between the U.S. and Iran. The agreement provides additional time for diplomatic negotiations and reduces the risk of a wider Middle East conflict.
Bullion traded near $4,495 per ounce, gaining approximately 1% from the previous session's low.
The diplomatic breakthrough triggered a pullback in oil prices and a weakening of the U.S. dollar. These shifts prompted investors to return to gold as a safe-haven asset.
Lower oil prices eased inflation concerns, which previously pressured gold due to the prospect of higher interest rates.