Gold extends gains on softer dollar, focus on Iran war

NoodlesOrTokens · 2026-04-02T08:26:14+00:00

Gold prices rose for the fourth consecutive session, supported by a weakening dollar and hopes of de-escalation in the Middle East conflict. Analysts suggest the potential for prices to exceed $5,000 per ounce if conditions improve.

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2026-04-02 08:26:14

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Gold edged higher on Wednesday, supported by a weaker dollar as U.S. President Donald Trump said the war with Iran could wind down within two to three weeks.

Brendon Thorne | Bloomberg | Getty Images

Gold rose for a fourth straight session on Wednesday as the U.S. dollar slipped and other ‌risk assets rallied on tentative hopes that the conflict in the Middle East will de-escalate.

Spot gold was up 2.5% at $4,784.22 per ounce, highest since March19. U.S. gold futures settled 2.9% higher at $4,813.10.

The U.S. dollar dropped for a second consecutive day, making greenback-priced bullion more attractive for holders of other currencies.

“Gold prices could move back above $5,000 per ounce if ⁠we’re on a path toward de-escalation, as rate-cut expectations could creep back in,” said Bob Haberkorn, senior market strategist at RJO Futures.

“The focus is on Iran and the Strait (of Hormuz) - how this conflict unfolds, and what the path forward looks like,” he added.

U.S. President Donald Trump said in a Truth Social post that Iran’s president asked for a ceasefire, but Iran’s foreign ministry spokesperson called that assertion false and baseless. Trump is scheduled to address the nation at 0100 GMT on Thursday. Axios earlier reported that discussions about a ceasefire are taking place.

“An end to the ‌conflict ⁠could prove a double-edged sword (for gold). On one hand, a lasting peace agreement would remove the geopolitical safe-haven bid that supported prices in the run-up to the conflict,” IG market analyst Tony Sycamore said.

On the other hand, lower oil prices and easing inflation could revive expectations of 2026 Fed cuts, which could ⁠help prices, Sycamore added.

Spot gold fell more than 11% in March as higher energy prices from the Iran war stoked inflation worries and led markets to scale back expectations of rate cuts.

Bullion is typically seen ⁠as a safeguard during geopolitical turmoil and inflation, but high interest rates reduce the appeal of the non-yielding metal.

U.S. private payrolls increased steadily in March, the ADP’s national employment report ⁠showed. U.S. retail sales rose solidly in February, but surging gasoline prices could crimp spending in the months ahead.

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