Gold prices climbed more than 1% on Wednesday to trade near $4,750 per ounce, trimming earlier intraday gains after the United States and Iran agreed to a temporary two-week ceasefire. The deal, which includes reopening the Strait of Hormuz and halting US military strikes, initially pushed bullion toward a three-week high of $4,850 as the US dollar index fell to a four-week low.
However, gold later pulled back from those highs as a sharp drop in crude oil prices eased energy-related inflation concerns that had previously supported the metal’s safe-haven appeal. Declining bond yields and renewed expectations for Federal Reserve interest rate cuts later in 2026 helped underpin the non-yielding asset, but investors locked in profits as risk appetite strengthened across global equity markets.
Market sentiment remains cautious, however, amid reports of localized air strikes in the region, underscoring the fragility of the Pakistani-brokered truce.
