In early Asian trading, gold prices increased as optimism grew over a potential peace agreement between the United States and Iran, a development that could lead to a decline in oil prices. Spot gold rose by 0.4% to $4,586.39 per ounce. A drop in oil prices might alleviate inflationary pressures and ease investor concerns about central bank interest rate hikes, which typically reduce the appeal of this non-yielding precious metal. U.S. President Donald Trump stated that, at the request of Gulf state leaders, he would postpone a planned U.S. strike on Iran to create room for negotiations with Tehran on a potential agreement to end the conflict.
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