Gold rose today, Wednesday, to its highest level in three weeks, as markets reassessed the risks following Trump's announcement of suspending attacks on Iran for two weeks, easing inflation concerns resulting from rising energy costs.
By 09:45 Mecca / Amman time, spot gold rose 2.75% to $4835.27 per ounce, while U.S. futures contracts for June gold delivery increased by 2.71% to $4860.59.
As for other precious metals, spot silver rose 4.9% to $76.48 per ounce, platinum increased by 3.2% to $2020.57, and palladium climbed 4.1% to $1529.35.
Trump announced his approval to suspend bombing and attacks for two weeks, stating that Washington received a ten-point proposal from Iran which he considered a suitable basis for negotiations. This came after setting a deadline for Tehran to reopen the Strait of Hormuz or face a widespread attack on its infrastructure.
In response, the Supreme National Security Council of Iran reported that negotiations with the United States would commence on April 10th in Islamabad, following Tehran’s proposal via Pakistan, confirming that these talks do not signify an end to the war.
Tai Wong, an independent metals trader, said, "This is an automatic rise from the relief, and it remains to be seen whether Iran will adhere to the ceasefire. For gold, the 200-day moving average at $4930 and then $5000 are major hurdles. Similarly, $80-$81 is an important level for silver.
