REUTERS

Gold prices extended gains on Friday, supported by a ‌weaker dollar and comments from Iran’s foreign minister that passage through the Strait of Hormuz remains open during the ceasefire, which pushed oil prices lower and eased some inflation concerns.

Spot gold was up 1.5 percent ​at $4,861.32 per ounce at 1:58 p.m. ET (1758 GMT), rising more than 2 percent so ​far this week.

US gold futures settled 1.5 percent higher at $4,879.60.

The passage of vessels through the strait will be on the coordinated route as already announced by the Ports and Maritime ​Organisation of Iran, Iran’s foreign minister said in a post on X. US President Donald ​Trump said talks could take place this weekend and he believed a deal to end the Iran war would come “soon”.

“Reopening the strait was a key event, and with oil prices under pressure, it is expected ​to ease inflation concerns and revive expectations of interest rate cuts - all good news ​for gold,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold prices could see ‌short-term gains back above the $5,000 per ounce level, he added.

The US dollar and oil prices extended their fall after the comments on Hormuz opening. A weaker US currency makes bullion more attractive to holders of other currencies.