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Gold Prices Surge on US-Iran Ceasefire Relief
Gold prices extended their rally on Wednesday morning (April 8) as markets reassessed short-term risks following a temporary de-escalation in tensions between the United States and Iran. The move came after Donald Trump agreed to pause military strikes against Iran for two weeks, easing fears of an immediate geopolitical escalation.
As of 06:30 WIB, spot gold rose 1.3% to $4,765.59 per ounce, building on a 1.2% gain in the previous session. Meanwhile, gold futures for June 2026 delivery climbed 2.3% to $4,793.20 per ounce, reflecting strong investor demand for safe-haven assets.
The bullish momentum was supported by Trump’s statement confirming the temporary halt in attacks, alongside the United States receiving a 10-point proposal from Iran—described as a viable basis for negotiations. The announcement followed earlier warnings from Washington, urging Iran to reopen the Strait of Hormuz or face potential retaliation.
Pakistan, acting as a mediator between Washington and Tehran, has requested a two-week extension to allow diplomatic efforts to progress. A senior Iranian official also indicated that Tehran is reviewing the proposal positively, signaling potential room for further de-escalation.
However, rising energy prices continue to fuel inflation concerns, complicating interest rate decisions by central banks. While gold is traditionally viewed as a hedge against inflation and economic uncertainty, its appeal may weaken in a high-interest-rate environment due to the lack of yield.
According to research by the Federal Reserve Bank of Dallas, prolonged disruptions in global oil trade could push US inflation above 4% by year-end, with the possibility of sharper increases in the near term.
Despite starting the year on a strong note, gold has declined around 10% since the Iran conflict began on February 28, highlighting ongoing market volatility.
Investors are now closely watching the release of minutes from the Federal Reserve’s March meeting for further policy direction. Meanwhile, China continues to strengthen its gold reserves, with the People’s Bank of China extending its buying streak to 17 consecutive months, based on data released Tuesday (April 7).
Among other precious metals, spot silver rose 2.4% to $74.70 per ounce, platinum gained 1% to $1,976.95 per ounce, and palladium increased 0.7% to $1,479.75 per ounce.