Gold Pares Most Gains

2026-04-08 18:39 By Joana Taborda 1 min. read

Gold prices pared most of the earlier gains but remained in positive territory on Wednesday, holding above $4,700 per ounce, as traders continued to assess developments in the Middle East and their implications for the economic and monetary outlook.

The US and Iran agreed to a temporary two-week ceasefire, including the reopening of the Strait of Hormuz and a suspension of US military strikes.

In response, oil prices plunged, the dollar weakened, and bond yields declined, all of which supported demand for bullion.

However, some investors moved to take profits as risk appetite returned to global equity markets.

At the same time, caution persisted amid reports of localized airstrikes in the region, underscoring the fragility of the Pakistan-brokered truce.

Meanwhile, minutes from the FOMC’s March meeting showed policymakers were concerned that Middle East hostilities could lead to sustained inflation requiring further rate hikes, although they still expected one rate cut this year.



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Gold Pares Most Gains
Gold prices pared most of the earlier gains but remained in positive territory on Wednesday, holding above $4,700 per ounce, as traders continued to assess developments in the Middle East and their implications for the economic and monetary outlook. The US and Iran agreed to a temporary two-week ceasefire, including the reopening of the Strait of Hormuz and a suspension of US military strikes. In response, oil prices plunged, the dollar weakened, and bond yields declined, all of which supported demand for bullion. However, some investors moved to take profits as risk appetite returned to global equity markets. At the same time, caution persisted amid reports of localized airstrikes in the region, underscoring the fragility of the Pakistan-brokered truce. Meanwhile, minutes from the FOMC’s March meeting showed policymakers were concerned that Middle East hostilities could lead to sustained inflation requiring further rate hikes, although they still expected one rate cut this year.
2026-04-08
Gold Pares Gains on Soaring Risk Appetite
Gold prices advanced over 1% to trade near $4,750 per ounce on Wednesday, paring earlier intraday gains after the United States and Iran reached a temporary two-week ceasefire agreement. The breakthrough, which includes the reopening of the Strait of Hormuz and a suspension of US military strikes, initially propelled bullion toward three-week highs of $4,850 as the US dollar index slumped to a four-week low. However, gold later retreated from these peaks as the plunge in crude oil prices significantly cooled the energy-driven inflation fears that had previously underpinned the metal's safe-haven appeal. While falling bond yields and renewed bets on Federal Reserve interest rate cuts later in 2026 provided a floor for the non-yielding asset, investors began taking profits as risk appetite returned to global equity markets. Market participants remain cautious due to reports of localized air attacks in the region, which highlight the fragility of the Pakistani-brokered truce.
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Gold Surges 2% as US-Iran Ceasefire Eases Inflation Fears
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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