Gold prices recover but still head towards their third consecutive month of decline

According to Reuters - Spot gold prices rose 0.6% to 4,518.57 USD/ounce, as investors assessed information about the extension of the ceasefire agreement between the US and Iran.

Previously, this precious metal had fallen to its two-month low of 4,365.76 USD/ounce in Thursday's session, but then closed up again.

Since the beginning of the month, gold prices have decreased by 2.2% and lost about 15% in the past three months. US gold futures for August delivery increased slightly by 0.4%, to 4,549.10 USD/ounce.

Yesterday, we saw gold prices fall to 4,360 USD/ounce and are likely to fall even deeper until the ceasefire agreement announcement is made. This information caused the price to reverse suddenly. That is also the state of the market this morning," said Mr. Brian Lan - Managing Director of GoldSilver Central.

The US and Iran reached an agreement on Thursday to extend the ceasefire and lift restrictions on transportation through the Strait of Hormuz, sources told Reuters. However, US President Donald Trump has not yet approved this agreement, while Iranian state media said the agreement has not been completed.

The market is currently waiting for an agreement to be signed, even if this document is only waiting for Mr. Trump's signature," Mr. Brian Lan added.

Oil futures fell more than 1% on Friday and are heading for their biggest weekly decline since the beginning of April. This development partly eases concerns about inflation due to rising energy prices due to the war in Iran.

US inflation in April increased at the fastest pace in three years, reinforcing economists' view that the US Federal Reserve (Fed) will keep interest rates unchanged for a long time, possibly extending to next year.

Although gold is considered an inflation hedging channel, this non-genuine asset is often under pressure in a high interest rate environment.

On the other precious metal market, spot silver prices fell 0.4% to 75.32 USD/ounce; platinum prices lost 0.3% to 1,916.75 USD/ounce. Both metals are heading towards a week of price decline. Meanwhile, palladium prices increased 0.3% to 1,371.54 USD/ounce and are on track to record a week of increase.