Gold prices climb to near 2-week high on Wednesday

Gold prices climbed to a near two-week high on Wednesday, supported by a weaker dollar after Donald Trump signalled the war with Iran could wind down within weeks.

Spot gold rose 1 per cent to $4,717.82 per ounce by 0712 GMT, its highest since March 20, while US gold futures for April delivery gained 1.4 per cent to $4,744.30. The US dollar fell 0.4 per cent, boosting demand for bullion among holders of other currencies.

Trump indicated Tehran would not need to reach a deal for the conflict to ease and said he would provide an update later on Wednesday. Analysts said expectations of a potential de-escalation supported both equity markets and gold prices, although caution persists after previous failed diplomatic efforts.

Gold had dropped more than 11 per cent in March, marking its steepest monthly decline since the Global Financial Crisis, as rising oil prices fuelled inflation concerns and reduced expectations for monetary easing.

Oil prices edged higher despite de-escalation hopes, with supply risks lingering due to infrastructure damage. Markets have largely ruled out US interest rate cuts this year, compared with earlier expectations of two reductions, limiting upside for non-yielding assets like gold.

Among other metals, silver fell 0.1 per cent to $75 per ounce, while platinum rose 1.4 per cent to $1,975.74 and palladium gained 1 per cent to $1,487.26.

Attribution: Reuters