COMEX gold was trading at 4,537.00, up 4.60 points or 0.10%, after moving between 4,519.50 and 4,551.20 an ounce during the session. COMEX silver rose 0.62% to 76.380 an ounce.
Bullion had fallen to a two-month low in the previous session before recovering on reports that the United States and Iran had reached an agreement to extend their ceasefire and ease restrictions on shipping through the Strait of Hormuz.
However, uncertainty remained after US President Donald Trump had yet to approve the arrangement, while Iranian state media said the agreement had not been finalised.
Market participants also continued to assess the inflation outlook in the United States after recent data showed inflation accelerated at its fastest pace in three years in April, driven largely by higher energy prices linked to the Iran conflict.
The inflation data reinforced expectations that the US Federal Reserve may keep interest rates elevated for longer. St. Louis Federal Reserve President Alberto Musalem said the central bank could consider raising rates if inflation does not ease over the next six months.
Separately, New York Fed President John Williams said monetary policy remained appropriately positioned, while adding that inflation was likely to stay elevated in the near term before easing later this year.
Higher interest rates typically reduce the appeal of non-yielding assets such as gold, though geopolitical uncertainty and inflation concerns continued to support safe-haven demand.
Meanwhile, data showed China’s net gold imports via Hong Kong jumped 81.2% in April from the previous month, indicating stronger physical demand from the world’s largest bullion consumer.
–With Reuters inputs
