In a high of three weeks gold prices climbed, Wednesday, as markets re-evaluated short-term risks, after Donald Trump agreed to suspend bombings and attacks on Iran for two weeks, mitigating the fears of inflation caused by energy.
The gold spot price It was increased by a rise of 2.69% to $4.832.64 per ounce. Earlier in the session, gold rose over 3% to its highest level since 19 March.
The gold futures US delivery in June moved up by 3.5% to $4.847,70.
Trump said Washington agreed to a two-week suspension of attacks and received a 10-point proposal from Iran, which he described as a functional basis for negotiations.
His comments followed previous warnings that Tehran must reopen the Strait of Hormuz, otherwise risking retaliation from the US against its political infrastructure.
Iran's Supreme Security Council announced that negotiations with the US would begin on 10 April in Islamabad, after submitting its proposal through Pakistan, although it added that these talks do not mark the end of the war.
The rise in energy prices may fuel inflation and complicate central banks' decision-making on interest rates. While gold is often seen as a means of compensation against inflation and uncertainty, its attractiveness tends to decrease in a high interest rate environment, as it does not offer return.
The markets now await the minutes, which are expected to be published later today, from the Fed meeting held in March.
Gold, which began the year with momentum, has retreated by more than 8% since the start of the war with Iran on 28 February.
The silver "exploded" by 7.86% at $77.64 per ounce, the Platinum noted an increase of 5.16% to $2,048.50 and the palladium won 6,45% at $1,552.00.
