Gold prices experienced an increase on Wednesday, supported by lower oil prices following the announcement of a US extension of a ceasefire with Iran, which alleviated concerns over a potential inflation spike and sustained high interest rates.
As of 0809 GMT, spot gold rose by 1 percent to $4,759.63 per ounce, bouncing back from its lowest point since April 13 that occurred on Tuesday. Concurrently, US gold futures for June delivery climbed 1.3 percent to $4,778.30.
President Donald Trump announced an indefinite extension of the ceasefire with Iran to facilitate ongoing peace talks, just hours before the original agreement was scheduled to expire. This decision appeared unilateral, with uncertainty surrounding whether Iran or US ally Israel would agree to the continuation of the ceasefire, which had been in place for two weeks.
Analyst Edward Meir from Marex commented, “With this ceasefire extension, the markets perceive a de-escalation in the crisis. If the ceasefire ends and hostilities resume, we will see the dollar strengthen, oil and interest rates go up, and that should pressure (gold) prices.”
Following the ceasefire announcement, stock prices rose, the dollar declined, and oil prices fell. Rising crude prices can lead to inflation by increasing transportation and production costs. While gold is often regarded as an inflation hedge, elevated interest rates may shift investor preference towards yield-bearing assets, thereby suppressing gold’s appeal.
Analysts at Standard Chartered remarked, “Price action remains at the mercy of Middle East ceasefire headlines and liquidity needs. While we note that the recent tick higher in prices has been fragile and is at risk of a short-term correction, we continue to expect (precious metals) prices to recover and gold in particular to retest record highs.”
In related market movements, spot silver rose 1.9 percent to $78.15 per ounce, platinum increased by 2.2 percent to $2,082.15, and palladium gained 2.4 percent, reaching $1,570.
The article was published on April 22, 2026.
