Gold Extends Hefty Gain as US-Iran Hopes Ease Inflation Fears

Gold extended gains as optimism over a potential US-Iran deal pushed down oil and gas prices, tempering fears that inflation will limit the scope for interest rate cuts.

Bullion traded above $4,700 an ounce, after jumping 3% on Wednesday for its biggest daily advance since late March. Falling energy prices weighed on bond yields, while the dollar fell to pre-war levels — both tailwinds for gold, which is priced in the US currency and doesn’t offer interest. Silver rose more than 5%, after jumping 6.2% in the previous session.