FX.co ★ Gold Holds Advance as US-Iran Deal Eyed

Gold traded above $4,300 an ounce on Tuesday, extending gains of more than 2% from the previous session. Prices were supported by easing concerns over an energy-driven inflation shock, after expectations grew that a US-Iran peace agreement would lead to the reopening of the Strait of Hormuz and temper the outlook for interest rate hikes. The interim accord is expected to be signed by both parties in Switzerland on Friday, with President Donald Trump stating that the free flow of oil from the Persian Gulf will resume once the deal takes effect. Still, investor caution persisted, as neither Washington nor Tehran has released the text of the memorandum of understanding. Markets also turned their attention to a busy week of central bank meetings, including the Federal Reserve’s first policy gathering under new chair Kevin Warsh, where officials are widely expected to keep interest rates on hold.