Key Takeaways

• Gold rallies: Spot gold jumped 1.8% to $4,637.14/oz, while U.S. gold futures for June climbed 1.7% to $4,647.31.
• Building momentum: The yellow metal had already gained nearly 1% in the previous session.
• Trump’s diplomatic pivot: The president announced a pause to “Project Freedom” and said a deal with Iran is close — a major shift toward diplomacy.
• Dollar weakens: The DXY traded 0.2% lower on optimism over a potential U.S.-Iran agreement, making gold cheaper for foreign buyers.
• Oil retreats: Crude prices extended losses, easing inflation expectations and providing relief to gold markets.
• Inflation pressure cools: The pullback in oil tempers fears of prolonged supply disruptions and “higher for longer” rates that have weighed on bullion.
• Silver surges: Silver prices jumped 3% to $75.08 per ounce.
• Platinum advances: Platinum gained 1.7% to $1,990.72 per ounce.

Gold prices rose during Asian trading on Wednesday, buoyed by a weaker dollar and softer oil prices, as signs of de-escalation in the Middle East reduced immediate inflation concerns.

Spot gold advanced 1.8% to $4,637.14 an ounce by 22:47 ET (02:47 GMT). U.S. Gold Futures for June climbed 1.7% to $4,647.31.

The yellow metal had already gained nearly 1% in the previous session.

Trump Pivots Toward Diplomacy

U.S. President Donald Trump said on Tuesday that Washington would pause an operation aimed at restoring commercial shipping through the Strait of Hormuz, adding that a deal with Iran was close.

The move marked a notable pivot toward diplomacy after the heightened tensions seen earlier this week, when Trump’s “Project Freedom” initiative to secure maritime routes through the strait triggered a military response from Iran — sending oil prices sharply higher.

Bullion Finds Relief from Multiple Fronts

Gold — traditionally a safe-haven asset — has come under pressure throughout the war as a spike in energy prices fanned inflation risks and reinforced expectations that interest rates could remain higher for longer. Both factors tend to weigh on non-yielding bullion.

Oil prices extended losses in Asian trading following Trump’s comments, easing some of the concerns about prolonged supply disruptions.

The pullback in crude helped temper inflation expectations, providing some relief to gold markets even as geopolitical risk premiums eased.

Meanwhile, the U.S. dollar weakened against major peers amid growing optimism over a potential U.S.-Iran agreement, making gold cheaper for holders of other currencies.

The DXY traded 0.2% lower in early Asian hours.

Other Metals Join the Rally

Among other precious metals, silver prices jumped 3% to $75.08 per ounce, while platinum advanced 1.7% to $1,990.72 per ounce.