Gold Hits 3-Week High After Trump Announces Iran Ceasefire
Gold prices surged to their highest level in three weeks during Wednesday’s Asian trading session, driven by a weaker US dollar following President Donald Trump’s announcement of a two-week ceasefire agreement with Iran. The move eased geopolitical tensions and reduced the likelihood of immediate military strikes on critical infrastructure.
Spot gold climbed 2.5% to $4,821.48 per ounce at 20:38 ET (00:38 GMT), marking its strongest level since March 19. Meanwhile, US gold futures also advanced 2.5% to $4,849.25 per ounce.
Other precious metals followed the upward trend. Silver prices jumped 4.7% to $76.44 per ounce, while platinum rose 2.5% to $2,030.60 per ounce, reflecting increased investor demand across the metals market.
Trump Delays Military Action on Iran
In a social media statement, President Trump confirmed that the United States would pause military operations against Iran for two weeks, noting that key strategic objectives had already been achieved. The announcement came just hours before a closely watched 20:00 ET deadline, which investors had feared could trigger a major escalation.
Earlier in the day, Trump warned of severe consequences if Iran failed to comply, heightening market uncertainty. However, the ceasefire—reportedly mediated by Pakistan after last-minute diplomatic efforts—helped stabilize global sentiment.
The agreement hinges on Iran’s assurance to reopen the Strait of Hormuz, a critical route responsible for roughly 20% of global oil shipments. Iranian officials signaled conditional cooperation, stating that safe passage would be maintained during the ceasefire period, provided hostilities cease and vessels coordinate with Iranian authorities.
Oil Prices Drop, Dollar Weakens
Global markets reacted swiftly to the news. Oil prices plunged more than 15%, while risk assets rallied and the US dollar came under pressure. The US Dollar Index fell nearly 1% in Asian trading, making gold more attractive for holders of other currencies.
Despite gold’s traditional role as a safe-haven asset, the metal faced pressure last month amid a sharp rise in oil prices, which fueled inflation concerns and strengthened expectations that the Federal Reserve may keep interest rates higher for longer.
Investors are now turning their attention to the upcoming US Consumer Price Index (CPI) report for March, scheduled for release on Friday. The data is expected to provide the first clear signal of how recent energy price spikes have impacted inflation. Economists anticipate a monthly increase in headline inflation, largely driven by rising fuel costs—potentially complicating the Federal Reserve’s policy outlook.
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