Spot gold rose 2.3% to $4,663.85 an ounce by 02:51 ET (06:51 GMT) on Wednesday, building on gains of nearly 1% in the previous session. U.S. Gold Futures for June delivery increased 1.7% to $4,647.31.<\/p>\n
The recent advance followed a period in which gold, traditionally viewed as a safe-haven asset, had come under pressure. A prior spike in energy prices had intensified inflation risks and reinforced expectations that interest rates could remain higher for longer, conditions that typically weigh on non-yielding assets such as bullion.<\/p>\n
Oil prices extended losses in Asian trading after comments from U.S. President Donald Trump, reducing concerns about prolonged supply disruptions. The retreat in crude helped temper inflation expectations, providing some support to gold even as geopolitical risk premiums eased.<\/p>\n
ING analysts noted that \u201ca more durable truce would reduce energy-led inflation risks and lower the chance of further Federal Reserve tightening, which is supportive for non-yielding assets.\u201d<\/p>\n
President Trump said on Tuesday that Washington would pause an operation aimed at restoring commercial shipping through the Strait of Hormuz and indicated that a deal with Iran was close. The announcement marked a shift toward diplomacy following heightened tensions earlier in the week, when Trump\u2019s \u201cProject Freedom\u201d initiative to secure maritime routes through the strait had triggered a military response from Iran and sent oil prices sharply higher.<\/p>\n
Meanwhile, the U.S. dollar weakened against major peers on growing optimism over a potential U.S.-Iran agreement, making dollar-priced commodities cheaper for holders of other currencies. The U.S. Dollar Index traded 0.4% lower in Asian hours.<\/p>\n
The softer dollar and improved risk sentiment supported a broader rise across metal markets. Silver prices jumped 4% to $75.73 per ounce, while platinum gained 2.2% to $2,000.40 per ounce. Benchmark Copper Futures on the London Metal Exchange climbed 1.5% to $13,289.78 a ton, and U.S. Copper Futures rose 1.7% to $6.09 a pound.<\/p>\n
Why did gold prices rise in Asian trading on Wednesday?<\/strong> What role did President Trump\u2019s comments on Iran play in the market move?<\/strong> How did other precious and industrial metals perform?<\/strong>
Gold prices rose due to a weaker U.S. dollar, falling oil prices, and signs of de-escalation in the Middle East, which eased immediate inflation concerns and supported non-yielding assets.<\/p>\n
President Trump\u2019s indication that a deal with Iran was close and that the U.S. would pause its Strait of Hormuz operation helped reduce geopolitical tensions, pressured oil prices lower, and contributed to the weaker dollar and improved sentiment for metals.<\/p>\n
Silver gained 4% to $75.73 per ounce, platinum rose 2.2% to $2,000.40 per ounce, benchmark London Metal Exchange copper futures increased 1.5% to $13,289.78 a ton, and U.S. copper futures advanced 1.7% to $6.09 a pound.<\/p>\n