Gold Prices Rebound After Weekly Lows on Ceasefire Developments
Gold prices moved higher during Asian trading on Wednesday, recovering from a one-week low after the United States announced an indefinite extension of its ceasefire with Iran. However, market sentiment remained cautious as uncertainty persists around the future of peace negotiations.
The precious metal had come under pressure in the previous session following comments from Federal Reserve Chair nominee Kevin Warsh, who stated he had made no commitments to cut interest rates if confirmed.
Gold Recovers Within Recent Trading Range
Spot gold rose 0.9% to $4,763.66 per ounce, while gold futures gained 1.3% to $4,782.21 per ounce. Despite the rebound, prices continued to trade within the established $4,700–$4,900 range seen over the past two weeks.
Other precious metals also posted gains. Silver climbed 2.4% to $78.5335 per ounce, while platinum advanced 2.3% to $2,087.15 per ounce.
Iran Ceasefire Extension Leaves Outlook Uncertain
On Tuesday, U.S. President Donald Trump confirmed an indefinite extension of the ceasefire with Iran, aiming to allow more time for diplomatic negotiations.
While the move offered some short-term relief to markets, the outlook for future talks remains unclear. Planned negotiations between U.S. and Iranian officials were unexpectedly cancelled at the last minute, adding to uncertainty.
Meanwhile, the continuation of a U.S. naval blockade against Iran has heightened tensions, with Iranian officials describing the measure as an act of war.
Gold’s Behavior Shifts Amid Geopolitical Pressures
Since the escalation of the Iran conflict in late February, gold has struggled to gain consistent upward momentum. Traditionally viewed as a safe-haven asset, the metal has instead traded more in line with risk assets such as equities.
This shift reflects investor concerns over the inflationary impact of the conflict, which has influenced gold’s price movements more than geopolitical risk alone.
Dollar Strength and Fed Outlook Weigh on Precious Metals
Gold and other precious metals were also pressured by a stronger U.S. dollar earlier in the week. The greenback gained following Warsh’s Senate testimony, where he emphasized the Federal Reserve’s independence and suggested potential policy changes if confirmed.
Warsh, a former Fed governor, is widely seen as less dovish than markets had anticipated. His nomination earlier this year contributed to a sharp sell-off in gold prices.
Fed Leadership Uncertainty Adds to Market Caution
Although Warsh is expected to be confirmed, the timing of his appointment remains uncertain. Some Republican lawmakers have indicated they may delay the process until the Trump administration drops an ongoing investigation into current Fed Chair Jerome Powell.
Powell is therefore expected to remain in his role beyond the end of his term on May 15, particularly if confirmation delays persist.
