Gold climbs as Israel-Lebanon ceasefire eases tensions

Gold prices rose on Thursday, recovering from a recent decline, as a conditional ceasefire agreement between Israel and Lebanon eased immediate geopolitical tensions and weakened the U.S. dollar. The move prompted a pullback in oil prices, temporarily alleviating some concerns about persistent inflation and higher interest rates.

Spot gold was up approximately 0.7 percent, trading near $4,465 per ounce. U.S. gold futures also gained. The agreement, announced on Wednesday following U.S.-led talks, is contingent on a complete cessation of hostilities by the Iran-backed Hezbollah group and the evacuation of its operatives from southern Lebanon. The development boosted hopes for a broader diplomatic resolution to regional conflicts that have disrupted global energy markets since late February.

A weaker U.S. dollar, which fell from a recent two-month high, made dollar-priced bullion less expensive for international buyers, supporting the price increase. Concurrently, oil prices retreated after three consecutive sessions of gains. Analysts noted that cooling geopolitical concerns and lower oil prices reduced near-term pressure on gold, which often moves inversely to crude. Elevated...