Gold climbed to its highest in three weeks on Wednesday after the U.S. and Iran agreed to a two-week ceasefire, calming inflation worries that have upended global markets.
Spot gold rose as much as 3% to over $4,850 per oz., extending its previous session’s gains in the lead-up to the ceasefire announcement. This takes gold back to levels last seen on March 19, though prices remain down 9% since the war began, as the metal recovers from its worst monthly performance since 2008.
“With oil and gas prices falling back sharply and the U.S. dollar and treasury yields reversing, risk appetite towards metals has sprung back, with gains this morning being led by the industrial metals (copper +3%, silver +6%, PGMs +4%), with gold spot also bouncing a firm 2.7%,” BMO Capital Markets wrote in a note on Wednesday.
“Given speculative positioning had reduced significantly since the conflict started, metals are now on firm ground to see further upside as long as positive conflict news flow continues, albeit oil prices are not expected to snap back to pre-conflict levels imminently.”
Gold trading levels yesterday and today.
Inflation concern
Bullion has come under pressure in recent weeks amid worries that rising oil prices from the Middle East conflict would stoke inflation and keep interest rates higher for longer, lifting real yields and reducing the appeal of non-yielding assets like gold.
Longer term, analysts are still expecting bullion to maintain its uptrend as the inflation risks fade away. Recently, Goldman Sachs reiterated its target price of $5,400 an oz. — around 13% higher than current levels. Those at Wells Fargo also doubled down on gold recently, with an upside target of $6,300 per ounce.
So far in 2026, gold has risen by 8.5%, with most of its gains coming in January as it rallied toward a record nearly $5,600 an ounce.
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