Gold prices edged slightly higher during Asian trading on Wednesday, recovering modestly from steep losses in the previous session. The gains were supported by a softer U.S. dollar, though optimism around a ceasefire between Israel and Iran weighed on the metal’s traditional appeal as a safe-haven asset.
Spot gold increased by 0.2% to $3,329.93 an ounce, while August gold futures rose 0.3% to $3,344.70 per ounce as of 02:16 ET (06:16 GMT).
The precious metal had dropped more than 1% on Tuesday following President Donald Trump’s announcement that a ceasefire agreement between Iran and Israel had taken effect.
Ceasefire Dims Gold’s Safe-Haven Appeal
Late Monday, Trump declared a multi-phase ceasefire between the two nations and urged both sides to adhere to its terms. Despite the formal announcement, doubts lingered about the truce’s stability. Hours after introducing the agreement, Trump criticized both countries on social media for allegedly breaking their commitments.
Gold, a traditional hedge during times of geopolitical tension, has come under pressure as the ceasefire appeared to hold. However, uncertainty surrounding its longevity, along with a weakening dollar, helped limit losses and provided some support.
Further complicating the picture, media reports on Tuesday revealed that recent U.S. strikes on Iran’s nuclear facilities were largely ineffective in eliminating key capabilities, merely delaying progress by a few months.
The U.S. Dollar Index dipped 0.1% during Asian hours, hitting its lowest level in about a week, which made dollar-denominated metals more attractive to international buyers.
Federal Reserve Chair Jerome Powell, in testimony to Congress, said the path for interest rates remained uncertain. He added that the Fed needed additional time to assess whether rising tariffs would fuel higher inflation.
Broader Metals Gain on Softer Dollar
Other metal markets also saw gains amid the weaker greenback. Silver futures climbed 0.5% to $35.928 per ounce, while platinum futures were largely flat at $1,318.15 per ounce.
Copper prices were mixed: benchmark futures on the London Metal Exchange rose 0.5% to $9,723.35 per ton, while U.S. copper futures held steady at $4.9015 per pound.
