WASHINGTON (dpa-AFX) - After moving sharply lower earlier in the day, the price of gold has shown a significant turnaround over the course of the trading session on Thursday.
Gold for August delivery has surged $52.50 or 1.2 percent to $4,534 an ounce after tumbling by as much as $85.90 or 1.9 percent to a two-month intraday low of $4,395.60 an ounce.
The rebound by gold prices comes as the price of crude oil has pulled back well off its highs after a report from Axios said U.S. and Iranian negotiators have reached an agreement on a 60-day memorandum of understanding.
Citing two U.S. officials and a regional source involved in the mediation efforts, Axios indicated the MOU would extend the ceasefire and launch negotiations on Iran's nuclear program.
Axios noted President Donald Trump has not yet given final approval, with U.S. official saying he wants a couple of days to think about the deal.
After surging as much as 4.3 percent, U.S. crude oil futures have pulled back sharply but currently remain modestly higher.
The price of crude oil spiked overnight after reports the U.S. launched another round of 'self-defense strikes' in southern Iran, leading Tehran to retaliate by purportedly targeting a U.S. air base.
In U.S. economic news, the Commerce Department released a report showing consumer prices in the U.S. increased by slightly less than expected in the month of April.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.4 percent in April after climbing by 0.7 percent in March. Economists had expected prices to increase by 0.5 percent.
The report also said the annual rate of growth by the PCE price index accelerated to 3.8 percent in April from 3.5 percent in March, in line with estimates.
Excluding food and energy prices, the core PCE price index crept up by 0.2 percent in April after rising by 0.3 percent in March. Core prices were expected to rise by another 0.3 percent.
The annual rate of growth by the core PCE price index ticked up to 3.3 percent in April from 3.2 percent, matching expectations.
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