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The price of gold is inching higher and headed for a fourth consecutive weekly gain as hopes rise for a lasting U.S.-Iran peace deal.

Spot gold (CRYPTO: $GOLD ) was trading at $4,890.00 U.S. per ounce on April 17, up 1% for the week and headed for a one-month win streak.

Gold had fallen steadily in late February and early March on fears that the Iran war would spark higher inflation and lead to a rise in interest rates.

As a non-yielding asset, gold performs best when interest rates are lower.

But now, investors are piling back into gold on hopes that the U.S., Israel and Iran will reach a permanent ceasefire to end their current hostilities.

Gold's price has been recovering since the U.S. and Iran announced a two-week ceasefire amid plans to negotiate a permanent resolution to the conflict.

The price of gold has also gotten a boost as the U.S. dollar fell to a six-week low on April 16 and is headed towards a second weekly drop.

Investors are also taking a shine to gold as crude oil prices continue to fall, easing fears of higher inflation and rising interest rates.

Futures markets are now pricing in a 27% chance of a 25-basis-point interest rate cut from the U.S. Federal Reserve in December of this year.

Gold remains below its all-time high of just under $5,600 U.S. per ounce reached in late January of this year.

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