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Gold Steadies on Iran Deal Optimism as Energy Markets Shift

Gold recovered as negotiations between the US and Iran advanced toward a potential agreement to reopen the Strait of Hormuz, easing inflation concerns. This tempered expectations for higher interest rates. Crude oil declined on the deal prospects, though the Trump administration indicated the blockade would remain in effect until a final agreement was reached. European natural gas fell during Asian trading hours on optimism surrounding the negotiations. Investors assessed mixed signals about the ceasefire deal's likelihood while weighing elevated energy prices against central bank policy needs. If the Strait reopens, market participants expect inflation pressures to ease, potentially relieving pressure on monetary authorities to maintain restrictive rate paths. The competing dynamics left precious metals and energy markets in flux as traders positioned for multiple scenarios.