Gold (XAU) and silver (XAG) prices turned positive after optimism of a US-Iran peace deal that pushed the US dollar lower. The two sides could sign an agreement as early as the weekend, President Donald Trump said. This agreement could help to ease the closure of the Strait of Hormuz and ease some of the tension in energy markets. But gold also had solid demand as XAU/USD jumped 3.42% to approach $4,220 on Thursday.
The drop in U.S. dollar also supported the rally in gold and silver prices. The index was down to 99.58 which pushed the spot gold to $4,246 and spot silver to $67.96. Despite the positive steps in the diplomatic process, there remains uncertainty in the market around Iran, oil flows and the next steps from Washington and Tehran.