Gold Prices Hit USD4,700 Per Ounce

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(MENAFN) Gold soared more than 3% Wednesday to hit $4,700 per ounce — its highest level in recent weeks — after fresh diplomatic signals between Washington and Tehran sparked investor optimism that a resolution to the Strait of Hormuz crisis may be within reach.

Market sentiment shifted sharply following reports that the White House believes it is closing in on a one-page memorandum of understanding with Iran — a preliminary agreement intended to halt hostilities and lay the groundwork for wider nuclear negotiations.

Axios, citing two US officials and two additional sources with direct knowledge of the matter, reported that Washington expects Tehran to respond on several outstanding issues within 48 hours.

The diplomatic breakthrough follows US President Donald Trump’s announcement on Tuesday that American forces would temporarily suspend “Project Freedom” — the military operation designed to safeguard commercial vessels navigating the strategically vital strait. Trump attributed the pause to a formal request from Pakistan and a coalition of other nations.

Pakistani Prime Minister Shehbaz Sharif moved swiftly to endorse the decision on Wednesday, expressing confidence that the current diplomatic momentum could translate into a durable regional settlement.

“Pakistan remains firmly committed to supporting all efforts that promote restraint and a peaceful resolution of conflicts through dialogue and diplomacy,” Sharif wrote on US social media company X.

The Strait of Hormuz — through which a significant share of the world’s oil supply flows — has remained at the center of market anxiety as weeks of military brinkmanship rattled global shipping lanes, energy supplies, and financial markets alike.

Gold, long regarded as the premier safe-haven asset in times of geopolitical stress, has tracked every development along the waterway closely, with investors now weighing whether the latest round of diplomacy carries enough substance to meaningfully defuse the standoff.

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