Gold Recovers Above $4,750 as US–Iran Ceasefire Extended

Gold Price Rebounds but Remains Below Conflict Highs

Gold climbed back above $4,750 an ounce on Wednesday, reversing some of the declines seen in the previous trading session. Despite the latest rebound, the metal is still down nearly 10% since the onset of the current conflict, indicating that investors have not fully restored earlier risk-averse positioning.

The price action followed President Donald Trump’s decision to extend the ceasefire with Iran. Trump stated that further strikes would be delayed until Iran presents a new proposal and negotiations are concluded, signaling a temporary pause in military escalation but not a resolution of the underlying dispute.

At the same time, the breakdown of plans for a second round of peace talks underscored ongoing geopolitical risk. Reports indicated that Vice President JD Vance canceled a planned trip to Islamabad for discussions after Tehran informed the United States via Pakistan that it would not participate in the meeting. Iran also said it would not reopen the Strait of Hormuz as long as the US Navy continues intercepting vessels, adding to regional tensions that can influence safe-haven demand for gold.

Policy Uncertainty Adds Pressure to Gold

In addition to geopolitical developments, gold faced pressure from monetary policy expectations shaped by the Senate confirmation hearing of Federal Reserve Chair nominee Kevin Warsh. Warsh pledged to act independently if confirmed and called for a new framework to address persistent inflation, though he did not provide specific details.

His comments introduced an element of uncertainty about the future direction of US monetary policy. Market participants often reassess inflation and interest rate expectations in response to such statements, which can impact non-yielding assets like gold. The combination of evolving US–Iran dynamics and potential changes in Federal Reserve policy appears to be contributing to the current volatility in gold prices.

FAQ

Why did gold move above $4,750 an ounce on Wednesday?
Gold rose above $4,750 an ounce as it recouped some losses following President Donald Trump’s decision to extend the ceasefire with Iran, which affected market sentiment and safe-haven positioning.

How has the conflict affected gold prices overall?
Despite the latest rebound, gold is currently down nearly 10% since the conflict began, indicating that prices remain well below conflict-period highs.

What role did US–Iran relations play in the latest gold price moves?
The extension of the ceasefire, the collapse of plans for a second round of peace talks, Iran’s refusal to participate in the Islamabad meeting, and its decision not to reopen the Strait of Hormuz while US naval interceptions continue all contributed to the geopolitical backdrop influencing gold.

How did Kevin Warsh’s confirmation hearing impact gold?
Kevin Warsh’s pledge of independence as Federal Reserve Chair nominee and his call for a new framework to tackle persistent inflation added to policy uncertainty, exerting additional pressure on gold prices.