- Gold builds on the overnight bounce from a two-month low amid mixed signals over the Iran peace deal.
- A rise in US inflation bolsters Fed rate hike bets, underpinning the USD and capping the precious metal.
- The technical setup favors bearish traders and warrants caution before positioning for further gains.
Gold (XAU/USD) attracts some buyers for the second straight day on Friday and recovers further from its lowest level since March 27, set the previous day. The precious metal climbs to the $4,525 region during the first half of the European session, though the upside seems limited as traders await further developments surrounding the US-Iran peace deal.
Axios, citing two US officials, reported that the US and Iran have reached a draft agreement to extend the ongoing ceasefire for 60 days. This eases concerns about a prolonged disruption to oil flows through the region and keeps Crude Oil prices depressed near the monthly trough, tempering rate hike expectations. Furthermore, the latest optimism undermines the US Dollar's (USD) reserve currency status, which, in turn, is seen as acting as a tailwind for the Gold price.