Optimism around a Middle East peace deal pulled inflation expectations lower, helping gold break out of a multi-week range above $4,200.

Gold has broken out above $4200, and silver is edging closer to a break past $63. The sharp rally is fuelled by growing optimism that a diplomatic breakthrough in the Middle East is close to being finalised.

Gold and Silver are trading higher as investors weigh reports of a possible deal to reopen the Strait of Hormuz. Such a move would help calm inflation worries and reduce the odds of the Federal Reserve raising interest rates in the near term.

Gold and silver edged higher as investors weighed conflicting signals over possible U.S.-Iran talks, while awaiting a run of U.S. labour market reports this week for clues on the Federal Reserve’s rate path.

Gold is trading near $4,100 and Silver around $60, with both metals losing some shine as the 2-year US Treasury yield, which reacts quickly to interest rate expectations, has climbed to its highest level in 17 months.

Gold and Silver bounced back on technical buying as investors weighed the widening Middle East conflict and waited for next week’s U.S. Federal Reserve meeting for hints on where interest rates are headed.

Gold has bounced back from its key support levels near $3960, and Silver has recovered from $55, after an Iranian official reportedly received a proposal for a 10-day ceasefire.

Gold has fallen over 3% and silver more than 7% this week.

Gold and silver prices are trading around support levels as the Middle East conflict keeps escalating with no signs of slowing down, wiping out recent optimism about easing inflation and stirring worries that rising oil prices could force the Fed’s hand on interest rates.

Gold slipped below the $4,000 mark after Fed Governor Christopher Waller delivered a surprisingly hawkish speech. Waller suggested that raising interest rates is just as likely as cutting them further, a stance that completely flips the market narrative that’s been building over recent weeks.

Gold has bounced back above $4100 and silver above $60, as investors keep a close eye on developments in the Middle East and what they could mean for inflation and interest rates.

Gold and silver have pulled back as oil prices surged and inflation worries deepened after US President Donald Trump declared that the interim agreement meant to end the conflict with Iran was “over.”