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.
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.
