Gold rose to its highest level in nearly three weeks on Wednesday as markets reassessed near-term risks following U.S. President Donald Trump’s announcement of a two-week suspension of bombing and attacks on Iran. This move eased concerns over inflation linked to surging energy prices.
اضافة اعلان
Market Performance
Spot Gold: Rose 2.5% to $4,819.52 per ounce by 07:26 GMT, after jumping more than 3% earlier in the session to its highest level since March 19.
U.S. Gold Futures (June delivery): Increased 3.4% to $4,845.30.
Other Precious Metals: Spot silver surged 5.8% to $77.16 per ounce, platinum rose 4% to $2,036.30, and palladium climbed 4.6% to $1,537.75.
Geopolitical Drivers
President Trump stated that Washington agreed to the two-week pause after receiving a 10-point proposal from Iran, which he described as a "workable basis" for negotiations. The announcement was made late Tuesday, just before the expiration of a U.S. ultimatum demanding that Iran reopen the Strait of Hormuz or face massive strikes on its infrastructure.
Iran's Supreme National Security Council confirmed that negotiations would commence on April 10 in Islamabad, following mediation by Pakistan. However, Tehran clarified that these talks do not necessarily signal the final end of the war.
Economic Outlook and Inflation
The surge in gold prices comes as investors weigh the potential for high energy prices to fuel inflation, which complicates central bank decisions regarding interest rates. While gold is a traditional hedge against inflation and uncertainty, its appeal often diminishes when interest rates rise, as the metal yields no interest.
Markets are currently awaiting the release of the U.S. Federal Reserve’s March meeting minutes later today for further direction. Notably, after a strong start to the year, gold had declined by more than 8% since the outbreak of the war with Iran on February 28.
Analyst Insight: > Independent metals trader Tai Wong noted: "This is a knee-jerk relief rally, and it remains to be seen if Iran complies. For gold, the 200-day moving average at $4,930 and then the $5,000 mark will be the primary technical hurdles. Similarly, $80–$81 remains a key level for silver."
Source: Reuters
