Gold Extends Gains as Dollar Weakens and Iran War Hopes Improve
Gold prices continued their upward trend on Wednesday in Asian trading, marking a fourth consecutive session of gains. The move was supported by a softer U.S. dollar and growing expectations that the United States and Iran could move toward ending the ongoing Middle East conflict.
Spot gold rose 0.6% to $4,694.16 per ounce, while U.S. gold futures climbed 1% to $4,724.55.
Trump Signals Potential Iran Exit, Boosting Market Sentiment
Support for gold increased after U.S. President Donald Trump indicated that Washington could withdraw from the Iran conflict within the next two to three weeks.
These comments fueled hopes of de-escalation, although uncertainty surrounding the timing and conditions of any agreement kept investor sentiment cautious.
On Iran’s side, President Masoud Pezeshkian stated that Tehran is open to ending the conflict, while emphasizing the need for guarantees to prevent future attacks.
Weaker Dollar Supports Gold Demand
The decline in the US Dollar Index further supported gold prices by making the metal more attractive to international buyers. The index slipped 0.1% during Asian trading after falling 0.6% in the previous session.
However, gold’s upside remained limited as reports suggested that the U.S. may end military operations even if the Strait of Hormuz remains largely closed. This scenario continues to pose risks to global trade and energy markets.
Recent Volatility Keeps Markets on Edge
Gold’s recent rally comes after a period of significant volatility. Prices had dropped sharply in March, declining more than 11% due to a stronger dollar and changing expectations regarding U.S. interest rates.
The current recovery reflects a shift in sentiment, as investors balance geopolitical developments with broader macroeconomic trends.
Mixed Performance in Precious Metals
Other precious metals showed mixed movements. Silver prices fell 1.1% to $74.35 per ounce, while platinum gained 1% to $1,972.06 per ounce, highlighting diverging trends within the sector.
