(Bloomberg) — Gold jumped as signs the US and Iran are closing in on a deal that would reopen the Strait of Hormuz tempered inflation concerns.

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Bullion rose to around $4,575 an ounce, erasing a moderate loss from last week. Negotiations on the precise language of the deal were ongoing and it may take several days for both sides to get final approval, US officials told reporters on Sunday. President Donald Trump said on social media he won’t “rush” into an agreement.

Earlier, US Secretary of State Marco Rubio had said there may be “some good news” regarding Hormuz in the coming hours, as Iran and Washington pressed ahead with peace negotiations.

Gold’s reaction to the headlines was still “relatively muted,” said Justin Lin, analyst at Global X ETFs in Sydney. “Markets have seen announcements from Trump fizzle into nothing multiple times now and must see more concrete evidence of cooperation from Iran before confirming moves higher and lowering inflation expectations.”

Bullion is still down about 13% since the conflict began in late February. Traders have ramped up rate-hike bets, as the Iran war has sent energy prices soaring. The money market is pricing in that the Federal Reserve is virtually certain to start raising rates by December. Higher interest rates weigh on bullion, which doesn’t pay interest.

As the new Fed chair Kevin Warsh takes the helm, investors will be looking for clues on his view on the economy.

Spot gold was up 1.5% at $4,575.30 an ounce at 8:11 a.m. in Singapore. Silver was 4% higher at $78.53. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was down 0.2%.

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