On Thursday, gold prices hit a two-week peak, supported by a weakening dollar and signs of easing tensions in the Middle East conflict, potentially reducing inflationary pressures. Market participants are eagerly anticipating comments from U.S. President Donald Trump. Spot gold saw a rise of 0.7%, hitting $4,790.29 per ounce as of 0034, the highest point since March 19. U.S. gold futures saw a slight rise of 0.1%, hitting a price of $4,816.10.
Trump is scheduled to give a televised address to the nation at 9 p.m. on Wednesday, with hints from his administration pointing towards a possible withdrawal from the ongoing month-long conflict with Iran. Trump told Reuters on Wednesday that the United States is likely to leave Iran “pretty quickly” and might carry out “spot hits” if needed, just hours before his scheduled speech. The dollar index fell for a third straight session, staying close to a one-week low, making dollar-denominated bullion more affordable for those holding alternative currencies.
The metal saw a decrease of 11% in March after the conflict in Iran began on February 28. This situation has led to increasing oil prices and heightened inflationary pressures, making the Federal Reserve’s path concerning monetary policy more complex. Expectations for a reduction in the Fed’s interest rates remain low for most of 2026, with market participants largely expecting no changes until there is a modest 27% chance of a cut at the December meeting. Gold continues to attract interest during periods of inflation and geopolitical instability; however, high interest rates typically reduce its attractiveness by increasing the opportunity cost linked to maintaining this non-yielding asset.
On Wednesday, St. Louis Federal Reserve President Alberto Musalem indicated that the U.S. central bank should maintain its current interest rate stance, even in light of rising inflation risks. Holdings of the largest gold-backed exchange-traded fund, New York’s SPDR Gold Trust, rose by 0.35% on Wednesday compared to Tuesday. Spot silver increased by 0.7% to $75.62, platinum saw a rise of 0.4% to $1,970.60, and palladium experienced a gain of 0.3% to $1,476.75.