Gold prices edged higher on Wednesday to their highest in nearly two weeks, supported by a weaker dollar as US President Donald Trump said the war with Iran could wind down within two to three weeks.
Spot gold rose 0.4 per cent to $4,685.79 per ounce by 0228 GMT, having hit its highest level since March 20 at $4,723.21 earlier in the day. US gold futures for April delivery gained 0.8 per cent to $4,713.40.
The US dollar fell 0.2 per cent, making greenback-denominated commodities more affordable for holders of other currencies.
“Talks that the US might wrap up the war in two to three weeks even if the Strait (of Hormuz) is not reopened reinvigorated the US equity markets and pulled gold higher along with it,” said Marex analyst Edward Meir.
US President Donald Trump said Tehran did not have to make a deal as a prerequisite for the conflict to wind down.
Trump will provide an update on Iran in an address to the nation at 9 pm on Wednesday (0100 GMT on Thursday).
Global equity and bond markets jumped on speculation of a potential de-escalation in the West Asia conflict.
“However, the upside (to gold prices) is being limited due to the fact that interest rates can move higher if inflationary expectations reignite,” Meir said.
Gold fell more than 11 per cent in March in its steepest monthly fall since October 2008 due to rising expectations of hawkish monetary policy and as the dollar emerged as a safe-haven winner since the Iran war started on February 28.
Traders have almost completely priced out any chance of a US Federal Reserve rate cut this year from about two cuts expected before the war.
Gold tends to thrive in a low-interest-rate environment as it is a non-yielding asset.
“Should geopolitical tensions de-escalate further, then expectations for Fed easing could return. In such a scenario, real yields can ease, providing support for gold,” said Christopher Wong, a strategist at OCBC.
Spot silver fell 0.8 per cent to $74.53 per ounce, platinum gained 0.7 per cent to $1,963.22 and palladium was up 0.6 per cent at $1,484.84.
Published on April 1, 2026