Gold Rebounds After US-Iran Ceasefire Extension

(RTTNews) - Gold traded higher on Wednesday despite stalled U.S.-Iran peace talks, the release of robust U.S. retail sales data and somewhat hawkish comments from Federal Reserve nominee Kevin Warsh at a Senate confirmation hearing.

Spot gold rebounded to trade 0.8 percent higher at $4,757 an ounce after falling over 2 percent in the previous session. U.S. gold futures were up 1.2 percent at $4,777 an ounce.

The dollar held near one-week highs and Brent crude prices hovered near $100 a barrel as concerns grew that the Middle East conflict could drag on.

U.S. President Donald Trump has announced a unilateral indefinite extension to a two-week ceasefire until Tehran submitted a "unified proposal" and "discussions are concluded one way or the other."

The ceasefire extension helped ease fears of an inflation spike and prolonged high interest rates.

Trump also said he would keep the naval blockade in place, which Iran's leaders have called an act of war.

The Trump administration has imposed new sanctions on Iran-linked networks, halted U.S. dollar shipments to Iraq and frozen security cooperation programs with its military.

Iran dismissed Trump's ceasefire extension as "meaningless" and said the Strait of Hormuz will remain closed until the U.S. blockade on Iranian ports is lifted.

Tasnim News Agency, affiliated with Iran's Revolutionary Guards, said Iran had not asked for a ceasefire extension and repeated threats to break the U.S. Navy's blockade of Iran's ports and shore by force.

Meanwhile, Federal Reserve chief nominee Kevin Wash on Tuesday told senators he had made no promises to President Trump about cutting interest rates.

He stressed Fed independence, assuring he would act independently of the White House while pursuing broad reforms.

Trump had only hours before told CNBC he would be disappointed if Warsh did not move quickly to lower borrowing costs.