Gold prices rebounded by more than 1% as the prospect of a US-Iran deal eased inflation concerns.

According to ME News, on May 25 (UTC+8), spot gold prices rose in early Asian trading on Monday, currently trading around $4,564 per ounce, a gain of 1.35%, as signs that the US and Iran were close to reaching an agreement to reopen the Strait of Hormuz eased inflation concerns. Spot silver rose more than 3%, reaching $78 per ounce; platinum and palladium also rose. US officials said on Sunday that negotiations on the specific wording of the agreement were still ongoing, and final approval by both sides could take several days. US President Trump said he would not rush to reach an agreement. Previously, US Secretary of State Rubio said that "some good news" regarding the Strait of Hormuz could emerge in the next few hours as Iran and Washington move forward with peace talks. Last Friday, Federal Reserve Governor Waller warned that the energy shock from the Iran war could exacerbate inflation, increasing bets on monetary tightening, and gold prices subsequently fell. Since the sharp drop in gold prices at the beginning of the Iran war, gold prices have been trading in a fairly narrow range, with investors weighing high interest rates against a high inflation and low growth outlook. Gold prices have fallen by about 14% since the conflict broke out at the end of February. (Source: ME)