Asian market early trading sees gold prices slightly higher as signs of easing tensions in the Middle East emerge.

Gold is edging higher slightly as signs suggest that tensions in the Middle East are easing, which could lead to lower oil prices and ease concerns about central bank rate hikes. Spot gold rose 0.3% to $4,686.07 per ounce.

The U.S. President Trump told aides that he is willing to end the war with Iran, even if most of the Strait of Hormuz remains closed. Middle East news reports that Iran’s President Pezeshkian may be willing to consider ending the war, provided that certain demands are met. In a report, four members of the Research Department of Oversea-Chinese Banking Corporation Group said that if geopolitical tensions ease or concerns about economic growth reemerge, expectations for the Federal Reserve to loosen policy could return. They added that in such a scenario, real yields may decline, which would support gold.

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