Gold prices climbed ​more than 2% on Wednesday after U.S. President ⁠Donald Trump indicated a possible peace deal may be reached with Iran, sending the dollar and crude lower as inflation concerns ebbed somewhat.

Spot gold ‌jumped 2.7% to $4,680.91 per ounce, as of 0811 GMT, having hit its highest since April 28. U.S. ‌gold futures for June delivery rose 2.7% to $4,693.20.

US President ‌Donald ⁠Trump said on Tuesday he would briefly pause an ⁠operation to help escort ships through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran.

Iran will only accept "a fair and comprehensive agreement" in ​its negotiations with the U.S. ‌on ending the war in the Middle East, its foreign minister said on Wednesday.

Gold gained as "oil prices retreated on reduction in geopolitical risk premium, after the U.S. confirmed that ‌the ongoing fragile ceasefire between Iran is still intact, ​despite the skirmish that was seen at the start of this week," Kelvin Wong, a senior market analyst ⁠at OANDA, said.

"Any signs of re-escalation of tension between the two of them, you will see gold prices seeing some ‌form of profit-taking, or for short-term speculators to unwind their near-term net long position in gold," Wong added.

A weaker U.S. currency makes dollar-priced metals cheaper for holders of other currencies.

Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is considered an inflation hedge, high interest ‌rates make yield-bearing assets more attractive, weighing on its appeal.

Investors await U.S. non-farm ​payrolls later this week which will test whether the economy remains resilient enough to keep the Federal Reserve's ⁠monetary policy on hold.

"Factors such as economic growth risks, worsening geopolitical ⁠relations, currency volatility and downside risks to equity markets will continue to support gold's role as a portfolio ‌diversifier," ANZ said in a note.

Spot silver rose 4.6% to $76.16 per ounce, platinum gained 2.9% to $2,009.25 and palladium was ​up 2.4% at $1,521.50.

Published on May 6, 2026