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Gold extends gains as Trump pauses Iran attacks for two weeks

Gold, which started the year on a strong note, has fallen more than 8 per cent since the Iran war began on Feb 28.

08 Apr 2026, 00:27 · CNA · Join

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Gold extended gains on Wednesday (Apr 8) as markets reassessed near-term risks after US President Donald Trump said he had agreed to suspend bombing and attacks on Iran for two weeks, easing fears of energy-driven inflation.

Spot gold climbed 2.3 per cent to US$4,811.66 per ounce by 11.44pm GMT after rising 1.2 per cent on Tuesday, while US gold futures for June delivery gained 3.3 per cent to US$4,840.20.

Trump said Washington had agreed to a two-week pause in attacks and had received a 10-point proposal from Iran, which he described as a workable basis for negotiations.

His comments followed earlier warnings that Tehran must reopen the Strait of Hormuz or risk US retaliation.

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"This is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200 day-moving-average at US$4,930 and then US$5,000 will be key hurdles. Similarly, US$80-US$81 is a important level for silver," independent metals trader Tai Wong said.

Pakistan, which has been mediating between Washington and Tehran, had requested the two-week extension to give diplomacy time to proceed.

Iran's Supreme Security Council said negotiations with the United States would begin on Friday in Islamabad, after it submitted its proposal via Pakistan, though it added that the talks did not signal an end to the war.

Rising energy prices could fuel inflation and complicate central bank decision on rate cuts. While gold is often seen as an inflation hedge and a safe-haven asset during uncertain times, its appeal tends to weaken in a high-interest-rate environment as it offers no yield.

According to research by the Federal Reserve Bank of Dallas, a prolonged disruption to global oil trade could push US inflation above 4 per cent by year-end, with steeper increases possible in the short term.

Gold, which started the year on a strong note, has fallen more than 8 per cent since the Iran war began on Feb 28.

Markets are now awaiting the minutes from the Fed's March meeting, due on Wednesday.

Among other metals, spot silver rose 4.3 per cent to US$76.08 per ounce, platinum gained 2.4 per cent to US$2,004.95 and palladium added 2.1 per cent at US$1,500.

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