Gold prices steadied near $4,670 per ounce after a 3% surge, while silver rose 6.2% to $77.50, as optimism over a potential US-Iran nuclear agreement eased inflation worries and triggered a sell-off in oil futures. The dollar weakened to pre-war levels, boosting gold’s appeal as a safe-haven asset amid falling bond yields. Markets had priced in a fragile truce, but tensions flared again Thursday as Tehran accused Washington of delaying sanctions relief.

The rally reflects eased inflation concerns after oil prices dropped 8% this week, with Brent crude falling to $68 a barrel. Analysts noted that a US-Iran deal could stabilize Middle East supply routes, reducing geopolitical risks to energy markets. However, lingering doubts about implementation kept gold’s gains tempered.

Bond markets reacted sharply, with U.S. Treasury yields retreating as inflation expectations cooled. The 10-year yield fell to 3.95%, its lowest since February, signaling investor flight to safer assets. Gold’s rebound contrasts with earlier volatility, where it had dipped below $4,500 on fears of prolonged U.S.-Iran standoff.

Investors now pivot to Federal Reserve policy implications, with bets growing that the central bank may cut rates this year if inflation remains subdued. The dollar’s depreciation to 2023 levels also supports gold, which inversely correlates with the greenback. Yet uncertainty over the truce’s durability keeps markets on edge, with precious metals poised for further swings.