Gold climbs to near three-week high after US, Iran agree to ceasefire
The US and Iran have agreed to a two-week ceasefire, subject to Iran’s agreement to pause its blockade of oil and gas supplies through the Strait of Hormuz
08 April, 2026
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Gold rose to a near three-week high on Wednesday, as oil prices and the dollar fell sharply after the US and Iran came to an agreement to cease hostilities for two weeks as talks begin on a permanent end to the conflict.
Spot gold was up 2 per cent at $4,795.99 per ounce, as of 0920 GMT. Earlier in the session, bullion rose more than 3 per cent to its highest level since March 19.
US gold futures for June delivery gained 3 per cent to $4,824.70.
Read more-What gold’s surge really says about currency confidence
The US and Iran have agreed to a two-week ceasefire, subject to Iran’s agreement to pause its blockade of oil and gas supplies through the Strait of Hormuz, Trump said.
Oil prices fell more than 13 per cent to below the $100 a barrel mark, while the dollar sank to its lowest level in a month on the news.
“The weaker dollar is supporting gold, but essentially it is also supported by lower oil prices, lower inflation and increased rate cut expectations after the ceasefire announcement,” said UBS analyst Giovanni Staunovo.
Gold has fallen 10 per cent since the US and Israel launched attacks on February 28. Though the metal is viewed as an inflation hedge, higher interest rates weigh on the non-yielding asset.
Investors now see a 43 per cent chance of at least one rate cut by year-end compared to 14 per cent a day prior, as per CME’s FedWatch Tool. The market now awaits minutes of the US Federal Reserve’s March policy meeting later in the day.
Stocks and bonds surged, but beyond the immediate relief investors were keen to see whether the ceasefire leads to a broader resolution before placing major bets.
“We continue to retain a constructive outlook for gold targeting a price of $5,900/oz by the end of the year, driven by diversification demand as result of rising debt levels and lower real interest rates,” Staunovo said.
Spot silver jumped 5.7 per cent to $77.06 per ounce, platinum gained 3.9 per cent to $2,033.86 and palladium added 4.1 per cent to $1,529.53.



















