Gold Climbs Above $4,700 as Iran Deal Signals Ease Inflation Fears and Dollar Weakens

EcoPulse24 | Dubai

Gold rose above $4,700 per ounce on Wednesday, advancing for a second consecutive session as diplomatic signals from Washington and Tehran pointed toward a potential end to the Middle East conflict, easing inflation fears and pushing the dollar lower - a combination that restored momentum to the precious metal after weeks of selling pressure.

The Axios Report: A One-Page Deal Taking Shape

Axios reported that the White House is nearing a one-page Memorandum of Understanding with Iran to end the conflict and begin nuclear negotiations - the closest the two sides have come to an agreement since hostilities began. Under the proposed framework, Iran would accept enhanced UN inspections, halt nuclear enrichment for 12 to 15 years, potentially transfer highly enriched uranium abroad, and limit underground facilities. In return, the US would gradually lift sanctions and unfreeze billions of dollars in Iranian assets. President Trump paused escalation plans earlier, citing progress in the talks.

The Dollar Factor

Beyond the diplomatic signal, a weakening US dollar provided additional tailwind for gold. The dollar index softened on Wednesday as risk appetite improved following the de-escalation reports, making dollar-denominated gold less expensive for holders of other currencies and amplifying buying interest from international investors. The inverse relationship between the dollar and gold - one of the most reliable dynamics in commodity markets - reasserted itself as market participants rotated away from the greenback toward hard assets.

Why Gold Had Been Under Pressure

Gold faced significant selling pressure since the war began. Soaring energy costs driven by the Hormuz disruption fueled inflation fears and reinforced expectations that central banks would keep interest rates elevated or tighten policy further - both conditions that typically weigh on non-yielding assets like gold. Wednesday's move above $4,700 reflects a partial reversal of that dynamic: if a ceasefire holds and energy prices retreat, the inflation argument for sustained high rates weakens, and gold's appeal as a store of value strengthens.

The terms of the proposed MOU are sourced exclusively from Axios. No official confirmation has been issued by Washington or Tehran at the time of publication.