Gold closes higher with news of alleged agreement between the US and Iran

Gold closed higher this Thursday (28), resuming the level of US$ 4,500, in a volatile session with an improvement in sentiment following reports of a preliminary agreement to end the conflict in the Middle East, despite new attacks in the early hours of the morning. In addition, the market also weighs a series of inflation, growth, industry, employment and housing data from the United States.

On Comex, the metals division of the New York Stock Exchange (Nymex), gold for August closed up 1.14%, at US$4,532.4 per troy ounce. Silver for July advanced 1.4%, to US$75.912 per troy ounce.

Precious metals even registered significant losses during the first hours of the day, with gold once again hitting two-month lows, amid new "defensive" attacks from the United States, as well as retaliation from Iran.

The stocks sent oil prices jumping, as did the dollar and Treasury yields, which, along with inflationary fears, weighed on gold, according to Saxo Bank.

However, the news that the countries reached a preliminary agreement caused assets to reverse direction, with precious metals starting to rise. According to American officials interviewed by CNN, the treaty should last 60 days and provides for the extension of the ceasefire, as well as the release of flow in the Strait of Hormuz, a "necessary" step towards the normalization of the energy sector, according to Capital Economics.

Additionally, the US PCE advanced less than anticipated, also relieving some pressure on precious metals, according to TD Securities. For Capital Economics, the result gives the Federal Reserve (Fed) more time to assess the impacts of rising energy prices. On the other hand, the second reading of the country's Gross Domestic Product (GDP) was lower than expected.

*With information from Dow Jones Newswires

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Source: CNN