Gold prices have risen by more than 3 per cent, reaching $4,700 per ounce, as renewed diplomatic signals from Tehran and Washington raise hopes that tensions around the Strait of Hormuz could ease after weeks of conflict and military escalation, Anadolu reports.

Investor sentiment has improved following reports that the White House believes it is nearing a deal with Iran on a one-page memorandum of understanding, aimed at ending the war and establishing a framework for broader nuclear talks.

Gold, traditionally viewed as a safe-haven asset during periods of geopolitical uncertainty, has remained highly sensitive to developments in the region as markets assess whether the latest diplomatic push can reduce the risk of further escalation.