Gold rose toward $4,820 an ounce on Thursday, recovering from a 1.1% drop in the previous session, as efforts to reach a diplomatic resolution to the Iran conflict eased inflation concerns despite ongoing tensions around the Strait of Hormuz. The US and Iran are reportedly considering extending a two-week ceasefire to allow further negotiations, with both sides signaling willingness to pursue diplomacy after inconclusive talks in Pakistan. Still, shipping through Hormuz remains heavily restricted, with the US blockading Iranian vessels and Tehran limiting broader traffic. President Donald Trump said the war is “close to over,” helping support sentiment across markets. Softer oil prices have reduced inflation fears, reinforcing expectations that the Federal Reserve will keep rates on hold, though uncertainty around policy and geopolitical risks continues to underpin gold demand.