Key Points:
- Gold prices climbed over 2% to hit $4,475 an ounce.
- President Trump pushed back the deadline for a deal with Iran.
- The U.S. pledged not to attack Iranian energy sites for 10 days.
- Turkey’s central bank sold $8 billion in gold during the conflict.
Gold is making a comeback today. Prices jumped more than 2% to reach $4,475 an ounce. This happened right after President Trump decided to give more time for a peace deal with Iran. Investors are watching closely because the market has been very shaky lately.
The President also promised that the U.S. won’t attack Iranian energy facilities for the next 10 days. This temporary truce gave some breathing room to the global markets. While people still worry about a long-term ceasefire, this short break helped stabilize stock prices and keep oil from spiking too high.
It might seem strange, but gold has actually lost about 15% of its value since the conflict started a month ago. Usually, gold goes up when there’s a war. This time, it followed the stock market and did the opposite of what oil was doing.
The main reason gold has struggled is the fear of inflation. When oil prices go up, everything gets more expensive. This makes people think central banks will keep interest rates high. Since gold doesn’t pay any interest, high rates usually drive investors away and into other assets like bonds.
There is also big news about central bank selling. Reports show that Turkey’s central bank sold about 60 tons of gold in the first two weeks of the war. That is worth more than $8 billion. This is a major shift because central banks buying gold was the main thing keeping prices high over the last few years.
Other precious metals joined the rally today. Silver gained 2.5%, and both platinum and palladium saw higher prices. Meanwhile, the U.S. dollar weakened just a bit. A weaker dollar usually helps gold because it becomes cheaper for people using other currencies to buy it.
While the 10-day delay offers some hope, the future of gold depends on what happens next in the Middle East. If a real deal happens, we might see even more shifts in the market. For now, traders are just glad to see some stability after weeks of wild price swings.
