Gold prices rebounded more than 1% on Thursday after hitting a one-week low in the previous session, supported by a weaker U.S. dollar and lower oil prices that eased concerns over inflation. Investors also assessed the latest Federal Reserve meeting minutes and ongoing developments surrounding the U.S.-Iran conflict.
Spot gold rose 1.2% to $4,124.36 an ounce, while U.S. gold futures gained 1.2% to settle at $4,133.17 an ounce.
The precious metal had declined on Wednesday after the United States and Iran exchanged military strikes in their most significant escalation since reaching an interim peace agreement last month. However, market sentiment improved after President Donald Trump said Tehran had reached out seeking a new agreement, reducing immediate fears of a broader regional conflict.
Trump said Iran "wanted to make a deal so badly" but questioned whether the country could be trusted to honor any future agreement. His comments came after U.S. forces launched strikes on roughly 170 Iranian targets following attacks on commercial oil tankers, with Iran retaliating by targeting U.S. military bases in the region.
The prospect of renewed diplomacy helped push oil prices lower, easing inflation expectations and providing additional support for gold.
Investors also focused on minutes from the Federal Open Market Committee's June 16-17 meeting, which revealed policymakers remain divided on the path for interest rates. While some officials favored an immediate rate hike, most indicated inflation could gradually move back toward the Fed's 2% target without further aggressive tightening, although risks remain from tariffs, artificial intelligence-driven demand, and geopolitical tensions.
Trade Nation senior market analyst David Morrison said the minutes suggest many Fed officials believe lower oil prices, helped by reduced U.S.-Iran tensions and the reopening of the Strait of Hormuz, could slow inflation and lessen the need for additional rate increases this year.
Adding to that view, New York Fed President John Williams said he does not expect energy prices to remain elevated through the rest of the year despite the latest military confrontation, reinforcing expectations that inflation pressures may continue to ease if oil prices stay contained.


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