Gold prices rise.
Gold prices rose on Thursday, recovering from the previous session’s losses as investors welcomed the signing of a U.S.-Iran interim peace agreement, while weighing the Federal Reserve’s signal for a rate hike later this year.
Spot gold rose 1.1% to $4,304.89 an ounce by 21:20 ET (01:20 GMT). However, U.S. Gold Futures slipped 1.3% to $4,325.97.
The yellow metal fell 1.7% in the previous session due to a stronger U.S. dollar and rising Treasury yields following the Fed’s latest policy decision.
Bullion found support from optimism surrounding the U.S.-Iran accord, which is expected to ease tensions in the Middle East and pave the way for the reopening of key energy export routes.
The 14-point memorandum begins a 60-day negotiation period during which Iran will allow toll-free passage through the Strait of Hormuz. The deal calls for traffic through the strait to be restored to its full capacity within 30 days.
US stock futures surge.
U.S. stock index futures rose sharply early-Thursday after reports showed U.S. President Donald Trump and his Iranian counterpart had remotely signed a preliminary deal to end their war.
Futures rebounded following a weak session on Wall Street, after the Federal Reserve signaled it was considering raising interest rates later this year amid growing concerns over higher inflation.
S&P 500 Futures rose 0.7% to 7,545.75 points by 01:55 ET (05:55 GMT). Nasdaq 100 Futures rose 1.2% to 30,347.0 points, while Dow Jones Futures rose 0.5% to 52,190.0 points.
Wall St nurses deep losses after Fed strikes hawkish chord
Wall Street indexes fell sharply on Wednesday after the Fed left interest rates steady but signaled an increasingly hawkish pivot.
The meeting, which was the first under new Chair Kevin Warsh, showed at least nine policymakers now anticipate an interest rate hike by the end of 2026.
Oil falls to 3-1/2-month low.
Oil prices fell by more than $2 per barrel on Thursday after the U.S. and Iran signed an interim agreement that would end the Iran war, reopen the Strait of Hormuz and waive U.S. sanctions on Tehran’s oil, boosting the oil supply outlook.
Brent crude futures were down $2.14, or 2.69%, at $77.41 a barrel as of 0616 GMT, and U.S. West Texas Intermediate fell $2.36, or 3.07%, to $74.43 a barrel.
Brent sank to its lowest since March 2, which was the first day of trading after the U.S. and Israel began attacking Iran, while WTI was at its lowest since March 4.
The benchmarks resumed their decline, reversing a jolt higher on Wednesday that followed comments from U.S. President Donald Trump saying he could resume his bombing campaign if Iran’s leaders “don’t behave”.
“The sell-off extended as energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels following the recent U.S.-Iran memorandum of understanding,” IG market analyst Tony Sycamore said in a note.
The 14-point memorandum begins a 60-day negotiation period during which Iran will allow toll-free passage through the Strait of Hormuz, a key oil and gas shipping lane. The deal calls for traffic through the strait to be restored to its full capacity within 30 days.
The preliminary accord defers many of the more difficult issues such as Iran’s nuclear program, and also requires the U.S. and its partners to come up with a $300 billion plan to finance Iran’s recovery.
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