Gold Surges 2% as US-Iran Ceasefire Eases Inflation Fears

2026-04-08 09:58 By Joana Ferreira 1 min. read

Gold prices rose nearly 2% to $4,790 per ounce on Wednesday, hitting their highest level since March 19, after the US and Iran agreed to a two-week ceasefire, reducing fears of energy-driven inflation.

Trump stated that Washington had agreed to pause attacks for two weeks and received a "workable" 10-point proposal from Iran as a foundation for negotiations, while Tehran committed to keeping the Strait of Hormuz open to ensure safe vessel passage.

Energy prices fell, prompting investors to revise their 2026 interest rate expectations.

The Federal Reserve is expected to maintain borrowing costs this year, reversing earlier concerns that rising inflation could force a rate hike later this year.

While gold is traditionally a hedge against inflation and uncertainty, its appeal tends to fade in a high-interest-rate environment due to its lack of yield.

Since the Iran war began on February 28, bullion has declined by over 8%.



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