Gold prices pushed higher on Wednesday, touching their strongest level in nearly two weeks, as a retreating U.S. dollar and fresh comments from President Donald Trump about a possible swift end to the Iran conflict eased some of the geopolitical anxiety that has gripped markets for more than a month.
Spot gold rose 0.4 percent to $4,685.79 an ounce by 0228 GMT after earlier climbing as high as $4,723.21 — its best mark since March 20. U.S. gold futures for April delivery jumped 0.8 percent to $4,713.40.
The dollar slipped 0.2 percent against a basket of major currencies, making dollar-priced commodities cheaper for buyers holding euros, yen or other currencies and giving bullion an extra tailwind.
The immediate catalyst was Trump’s latest remarks on the Middle East flare-up that began Feb. 28. The president told reporters the war with Iran “could wind down within two to three weeks,” even if the Strait of Hormuz remains closed, and that Tehran did not need to strike any formal deal beforehand. He is scheduled to deliver a formal address to the nation at 9 p.m. Eastern time (01:00 GMT Thursday) with an update on the situation.
“Talks that the U.S. might wrap up the war in two to three weeks even if the Strait is not reopened reinvigorated the U.S. equity markets and pulled gold higher along with it,” said Edward Meir, analyst at Marex. Global stock and bond markets also surged on the de-escalation hopes.
Yet the rally in bullion remained modest. Meir noted that any further upside is being capped by the prospect of higher interest rates should inflation expectations flare again. Gold, which pays no yield, tends to lose appeal when real interest rates rise.
The metal has been under heavy pressure lately. It plunged more than 11 percent in March — its steepest monthly drop since October 2008 — as traders ditched expectations of Federal Reserve rate cuts and the dollar reasserted itself as the go-to safe haven once the Iran fighting erupted. Before the conflict, markets had priced in roughly two Fed cuts for 2026; those bets have now essentially vanished, according to CME Group’s FedWatch tool.
“Should geopolitical tensions de-escalate further, then expectations for Fed easing could return,” said Christopher Wong, strategist at OCBC. “In such a scenario, real yields can ease, providing support for gold.”
Among other precious metals, spot silver gave back 0.8 percent to $74.53 an ounce. Platinum added 0.7 percent to $1,963.22, while palladium rose 0.6 percent to $1,484.84.
Traders will now watch Trump’s evening address for any concrete signs that the five-week-old conflict is indeed heading toward a rapid conclusion.
A clearer path to de-escalation could keep the dollar under pressure and reopen the door to looser U.S. monetary policy later this year — two classic tailwinds for gold. Until then, the yellow metal remains caught between lingering safe-haven demand and the market’s growing conviction that the Federal Reserve will keep rates higher for longer.
For now, the modest rebound Wednesday shows investors are willing to price in some hope — but not yet ready to bet the farm on it.
WHAT YOU SHOULD KNOW
Gold prices rebounded modestly to a near two-week high on Wednesday, driven primarily by a weakening U.S. dollar and growing optimism that President Trump’s signals could lead to a swift end to the Iran conflict within 2-3 weeks.
While de-escalation hopes are lifting markets and capping gold’s recent steep losses, any sustained rally in bullion will likely depend on whether falling geopolitical tensions eventually revive expectations for Federal Reserve rate cuts later this year.
