Gold prices soared on Wednesday to their highest level in nearly three weeks as markets reassessed short-term risk following a major geopolitical development.
The surge came after Donald Trump announced a two-week suspension of airstrikes and military operations against Iran, easing fears of inflation driven by rising energy costs.
By 09:42 UAE time, spot gold had risen 2.63% to $4,830.31 per ounce, after briefly jumping more than 3% earlier in the session, marking its highest level since March 19. U.S. gold futures for June delivery climbed 3.59% to $4,852.90.
Trump said the U.S. had received a 10-point proposal from Iran, which he described as a practical basis for negotiation.
The announcement followed a previous warning from the U.S. that Tehran must reopen the Strait of Hormuz or face a wide-scale attack on its infrastructure.
Independent metals trader Tai Wong described the rise as a “relief-driven spike,” noting that gold’s 200-day moving average at $4,930 and the $5,000 level may act as key resistance points.
The Iranian Supreme National Security Council confirmed that negotiations with the U.S. will begin on April 10 in Islamabad
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