FINWIRES · TerminalLIVE
FINWIRES

Update: Gold Rises Midafternoon on Reports Iran and the U.S. Agreed to Extend Their Ceasefire

By

(Updates prices.)

Gold was higher midafternoon on Thursday, rising off early lows as the dollar and yields fell after reports the United States and Iran on agreed to extend a ceasefire for 60 days. lowering oil prices and easing inflation worries even a key U.S. inflation measure rose in April.

Gold for July delivery was last seen up US$52.50 to US$4,4,534.00 per ounce, after earlier touching US$4,395.60.

The drop comes as oil prices also gave up early gains after Axios reported the two countries will extend their ceasefire agreement. The potential deal comes despite earlier reports U.S. forces attacked a drone-control base in Iran and shot down Iranian drones, while Kuwait intercepted an Iranian missile and Iran attacked commercial shipping in the Persian Gulf.

The U.S. Bureau of Economic Analysis on Thursday reported the Personal Consumption Expenditures (PCE) Index, the Federal Reserve's preferred inflation measure, rose 3.8% annualized in April, up from 3.5% in March and matching expectations, according to Marketwatch. Core PCE, excluding volatile food and energy, rose at a 3.3% annual pace, again matching expectations and up from 3.2% a month earlier.

The Bureau also released its second revision to its estimate for first-quarter gross domestic product growth, cutting its estimate to 1.6% from 2.0%. The agency was expected to maintain its 2.0% estimate, according to Marketwatch.

The dollar was lower, with the ICE dollar index last seen down 0.21 points to 98.99. Treasury yields fell, with the U.S. two-year note last seen paying 4.031%, down 1.0 basis points, while the yield on the 10-year note was down 3.2 points to 4.456%.

Related Articles

Sectors

Sector Update: Energy Stocks Edge Higher in Afternoon Trading

Energy stocks were slightly higher Thursday afternoon, with the NYSE Energy Sector Index increasing 0.2% and the State Street Energy Select Sector SPDR ETF (XLE) fractionally higher.The Philadelphia Oil Service Sector Index was falling 1.4%, and the Dow Jones US Utilities Index shed 0.3%.Front-month West Texas Intermediate crude oil was fractionally higher at $88.69 a barrel, and the global benchmark Brent crude contract was dropping 1% to $93.36 a barrel. Henry Hub natural gas futures rose 5% to $3.04 per 1 million BTU.In sector news, US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 12.4 million barrels in the week ended May 22 following a decrease of 17.8 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks declined by 3.3 million barrels after a 7.9-million-barrel decline in the previous week, a larger drop than the 3-million-barrel decrease expected in a survey compiled by Bloomberg.In corporate news, TotalEnergies (TTE) and Stellantis (STLA) have renewed and expanded their partnership in Europe to develop and deliver engine oils and lubricants, the companies said. TotalEnergies shares rose 0.9%.Baker Hughes (BKR) has secured multiyear contract extensions with Equinor (EQNR) for drilling, well services and wireline intervention in the North Sea. Baker Hughes shares climbed 1.6%, and Equinor was fractionally higher.BP (BP) will become operator of Azerbaijan's offshore Babek natural gas field under an agreement expected to be announced with state energy company Socar on June 1, Reuters reported. BP shares were down 0.5%.

$BKR$BP$EQNR$TTE
Sectors

Sector Update: Financial Stocks Decline Thursday Afternoon

Financial stocks were lower in Thursday afternoon trading, with the NYSE Financial Index decreasing 0.5% and the State Street Financial Select Sector SPDR ETF (XLF) down 0.4%.The Philadelphia Housing Index eased 0.2%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) added 0.1%.Bitcoin (BTC-USD) was falling 1.3% to $73,337, and the yield for 10-year US Treasuries was down 3 basis points at 4.45%.In economic news, on a month-on-month basis, the personal consumption expenditures, or PCE, price index slowed to 0.4% in April from 0.7% in the previous month, Bureau of Economic Analysis data showed Thursday. The Street expected 0.5%. The core PCE price index, which excludes the more volatile food and energy and is the Fed's preferred inflation gauge, grew by 0.2% versus March's 0.3%, also the consensus for April.US economic growth, as measured by gross domestic product, rose by 1.6% in Q1, revised lower from a 2.0% increase in the advance estimate. No revision was expected in a survey compiled by Bloomberg. GDP rose by 0.5% in Q4.New orders for US durable goods rose by 7.9% in April following a 1.3% increase in March, beating the 4.0% gain forecast in a survey compiled by Bloomberg.In corporate news, MetLife (MET) and Ares Management (ARES) are at odds over restructuring of Eagle Football Group's debt, Bloomberg reported. Ares, which has provided more than $400 million in financing to Eagle Football, is trying loan restructuring while MetLife is being told to wait longer to get paid back, the report said. MetLife shares were down 1.2%, and Ares rose 0.3%.Cambridge University is pulling out funds from HSBC (HSBC), Barclays (BCS), and other institutions that continue to finance fossil fuels, Bloomberg reported. HSBC shares fell 1.5%, and Barclays was down 0.8%.Apollo Global Management (APO) and other investment firms, including Angelo Gordon and Oaktree Capital, are facing a lawsuit from a rival creditor group alleging they planned illicit financing deals to take collateral from chemical manufacturer Trinseo, The Wall Street Journal reported. Apollo shares were shedding 0.7%.

$APO$ARES$BCS$HSBC$MET
Sectors

Sector Update: Healthcare Stocks Gain Thursday Afternoon

Healthcare stocks rose Thursday afternoon, with the NYSE Healthcare Index rising 1.1% and the State Street Health Care Select Sector SPDR ETF (XLV) adding 1.2%.The iShares Biotechnology ETF (IBB) increased 1.1%.In corporate news, Eli Lilly's (LLY) weight-loss drugs secured coverage from the three largest US pharmacy benefit managers, the drugmaker said Thursday. Lilly shares gained 3.6%.Agilent Technologies (A) stock jumped 19% after the company posted higher fiscal Q2 adjusted earnings and revenue, and raised its fiscal 2026 adjusted EPS guidance.Illumina (ILMN) shares climbed 4.9% after it said it launched a whole-genome sequencing research workflow for molecular residual disease detection.Cogent Biosciences (COGT) shares added 2.4% after it said the US Food and Drug Administration has accepted its new drug application for bezuclastinib plus sunitinib to treat patients with gastrointestinal stromal tumors who have been treated with imatinib previously.

$A$COGT$ILMN$LLY