Gold rises as Trump pauses Iran strikes

Gold prices climbed to a near three-week high on Wednesday after Donald Trump announced a temporary pause in military action against Iran, easing fears of escalating conflict and energy-driven inflation.

US gold futures for June delivery rose by 3.4% to $4,841.60, reflecting a swift market reaction to the development. Investors reassessed near-term risks after Washington agreed to suspend bombing and attacks on Iran for two weeks, opening a window for diplomatic engagement.

Trump stated that the United States had received a 10-point proposal from Iran, which he described as a workable basis for negotiations. His remarks followed earlier warnings that Tehran must reopen the Strait of Hormuz or face possible retaliation.

Analysts described the surge in gold prices as a “knee-jerk relief rally,” noting that uncertainty remains over whether Iran will comply with the proposed terms. Market participants are closely watching key technical levels, including resistance points near $4,930 and $5,000.

Gold prices drop sharply in Pakistan market

Pakistan has been actively mediating between Washington and Tehran and reportedly requested the two-week pause to allow diplomatic efforts to proceed. Iran’s Supreme Security Council indicated that talks with the United States are expected to begin on April 10 in Islamabad, although it clarified that negotiations do not necessarily signal the end of hostilities.

Gold is traditionally viewed as a safe-haven asset during periods of geopolitical uncertainty and inflationary pressure. However, its appeal can weaken in a high interest rate environment since it does not offer yield.

According to research from the Federal Reserve Bank of Dallas, prolonged disruption in global oil trade could push US inflation above 4% by year-end.

Other metals also rallied, with silver, platinum, and palladium posting notable gains in volatile trading.