On Wednesday, gold prices rose, hitting their highest level in nearly two weeks, supported by a weakening dollar after U.S. President Donald Trump’s comments suggesting that the conflict with Iran could end soon. Spot gold rose by 0.7% to $4,700.41 per ounce as of 0109, reaching its highest level since March 20. Gold futures in the U.S. for April delivery rose by 1.1%, hitting a price of $4,729.80. The U.S. dollar weakened, leading to a reduction in the price of dollar-denominated commodities for those holding other currencies.
Gold saw a decline of over 11% in March, representing its largest monthly drop since October 2008. The recent decline was influenced by growing expectations of a stricter monetary policy, coupled with the dollar’s rise as a favored safe-haven asset after the beginning of the U.S.-Israeli conflict with Iran on February 28. U.S. President Donald Trump mentioned that the United States might wrap up its military actions against Iran in about two to three weeks, suggesting that Tehran does not need to achieve an agreement for the reduction of hostilities.
Trump is scheduled to provide an update on Iran during a national address at 9 pm on Wednesday (0100 on Thursday), according to White House spokeswoman Karoline Leavitt on X. Global equity and bond markets experienced a significant rise due to speculation about a potential easing of tensions in the Middle East conflict, leading to the largest one-month increase in global oil prices ever documented. Market participants have largely ruled out the possibility of a U.S. Federal Reserve rate cut this year, as increasing energy prices present a risk of adding to overall inflationary pressures.
Before the conflict in the Middle East began, there were expectations of two rate cuts for this year. Brazil’s central bank has significantly increased its gold holdings in 2025, making the metal the second-largest part of its foreign exchange reserves, after the U.S. dollar, according to its annual report released on Tuesday. Spot silver held steady at $75.11 per ounce, while spot platinum saw a rise of 1.2% to $1,971.45, and palladium increased by 0.4% to $1,482.36.