Global Gold Prices Rise 3 Percent After Trump Announces Ceasefire

Global gold prices strengthened after US President Donald Trump announced a two-week ceasefire with Iran.

According to Bloomberg on Wednesday (8 April 2026), the spot gold price rose 3 percent to $4,849.01 per troy ounce at 08:02 Singapore time.

Meanwhile, US gold futures contracts jumped up to 3.1 percent and briefly broke through the $4,850 per troy ounce level, continuing a 1.2 percent increase from the previous session.

In his social media statement, Trump described the temporary halt in attacks as conditional on reopening the Strait of Hormuz. The Iranian side stated that the shipping route in the strait was “feasible” to open for two weeks.

With the easing of geopolitical tensions, global oil prices plunged below $100 per barrel, while the US dollar index (DX-Y.NYB) weakened by 0.98 percent.

This situation also supported gold prices, which are traded in US dollars. On the other hand, global stock markets surged more than 2 percent.

Analyst at Pepperstone Group Ltd, Ahmad Assiri, assessed that the rise in gold above $4,800 reflects a risk adjustment, not a major trend change.

“This movement shows that the market is starting to account for a lower likelihood of prolonged disruptions, although it still leaves a discount compared to conditions before the Iran conflict,” said Assiri.

Entering the sixth week, the conflict has driven surges in energy prices and increased inflation risks.

This situation could lead central banks, including the Federal Reserve (The Fed), to delay interest rate cuts or even maintain tight monetary policy for longer.

Since the conflict broke out at the end of February, global gold prices had corrected by nearly 10 percent.

However, in the last few days, gold prices have begun to recover, driven by hopes of a ceasefire and expectations of a global economic slowdown that could offset pressure from high interest rates.

Before the ceasefire announcement, several Fed officials voiced concerns about inflation and economic slowdown.

In the short term, Assiri emphasised that gold prices remain highly sensitive to political dynamics.

“This ceasefire provides a breathing space, but it is fragile. If disruptions occur, especially in the Strait of Hormuz, volatility and downside risks could increase again,” he said.