Gold ticks up on weaker dollar, Mideast de-escalation hopes grow

Synopsis

Gold prices surged to a near two-week high on Wednesday. A weaker US dollar and hopes for a de-escalation in the Iran conflict boosted the precious metal. Global markets reacted positively to speculation of peace. Traders have largely dismissed chances of a US Federal Reserve rate cut this year. Brazil's central bank significantly increased its gold holdings.

Gold prices rose on Wednesday to their highest in nearly two weeks, supported by a weaker dollar as U.S. President Donald Trump said the war with Iran could wind down within weeks.

FUNDAMENTALS

* Spot gold rose 0.7% to $4,700.41 per ounce by 0109 GMT, its highest level since March 20. U.S. gold futures for April delivery gained ‌1.1% to $4,729.80.

* The ⁠U.S. ⁠dollar fell, making greenback-denominated commodities more affordable for holders of other currencies.

* Gold fell more than 11% 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 U.S.-Israeli war on Iran started on February 28.

* U.S. President Donald Trump said the United States ⁠could end its ‌military attacks on Iran within two to three weeks and 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), White House spokeswoman Karoline Leavitt said on X.

* Global equity and bond markets jumped on speculation of a potential de-escalation in the Middle East conflict that has driven the biggest one-month increase in global oil prices in history.

* Meanwhile, traders ‌have almost completely priced out any chance of a U.S. Federal Reserve rate cut this year, as higher energy prices threaten to feed into broader inflation. Before the ⁠war in the Middle East began, there were expectations of two rate cuts for this year.

* Brazil's central bank doubled its gold holdings in 2025, making the metal the second-largest component of its foreign exchange reserves after the U.S. dollar, according to its annual report released on Tuesday.

* Spot silver was steady at $75.11 per ounce, spot platinum gained 1.2% to $1,971.45 and palladium was up 0.4% at $1,482.36.

DATA/EVENTS (GMT)

0900 EU Unemployment Rate Feb

1230 US Retail Sales MM Feb

1345 US S&P Global Mfg PMI Final Mar

1400 US ISM Manufacturing PMI Mar

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