Gold surged more than 2% to above $4,800 per ounce on Wednesday, extending its recent rally after President Donald Trump postponed planned strikes on Iranian civilian infrastructure by two weeks to allow time to finalize talks on a potential resolution to the war. Less than two hours before a deadline for Iran to accept a deal or face intensified attacks, Trump announced what he called a “double-sided ceasefire,” conditional on Iran reopening the Strait of Hormuz.
Trump also said the United States had received a 10-point proposal from Iran, which he described as a “workable basis for negotiations.” The two-week delay is intended to provide time for a possible agreement to be finalized and implemented. Tehran, however, has not confirmed Trump’s assertions or indicated whether it will permit the resumption of commercial shipping through the Strait of Hormuz.
Gold had previously fallen as much as 25% from peak to trough since the conflict began, as a spike in energy prices stoked inflation fears and underpinned a more hawkish stance from central banks.
