Global Gold Prices Rise Again Supported by US Dollar Weakness
NEW YORK - Global gold prices continued to strengthen at the close of trading on Wednesday (1 April 2026) local time, or Thursday morning (2 April 2026) Western Indonesia Time, supported by the weakening of the US dollar and expectations of easing conflict in the Middle East.
Quoting Reuters, the spot gold price rose 2.5 per cent to $4,784.22 per ounce, the highest level since 19 March 2026.
Meanwhile, US gold futures contracts strengthened 2.9 per cent to $4,813.10 per ounce.
The gold price rally occurred after the US dollar weakened for two consecutive days.
Senior market strategist at RJO Futures, Bob Haberkorn, said market attention is now focused on developments in the Middle East conflict, particularly Iran and the Strait of Hormuz.
“Gold prices could break through $5,000 per ounce again if we are on track towards de-escalation (of the Middle East conflict), as expectations of interest rate cuts could re-emerge,” said Bob Haberkorn, senior market strategist at RJO Futures.
On the other hand, US President Donald Trump, via a post on the social media platform Truth Social, stated that Iran has requested a ceasefire.
However, that statement was refuted by a spokesperson for Iran’s Foreign Ministry, who called the claim untrue and baseless.
Meanwhile, an Axios report mentioned that ceasefire talks are ongoing, and Trump is scheduled to deliver a speech to the public on Thursday.
IG market analyst Tony Sycamore assessed that the potential end to the conflict could be a double-edged sword for gold prices, weakening or strengthening them.
“On one hand, lasting peace would eliminate the safe-haven demand that has supported gold prices during the conflict,” he said.
However, on the other hand, he added, falling oil prices and easing inflation could once again drive expectations of interest rate cuts by the US central bank in 2026, which could support gold prices.
Throughout March 2026, gold prices were recorded to have fallen more than 11 per cent due to a surge in energy prices triggered by the Middle East conflict, thereby increasing inflation concerns and causing markets to reduce expectations of rate cuts.
In general, gold is known as an asset that hedges against geopolitical uncertainty and inflation.
However, high interest rates tend to pressure gold’s attractiveness because this precious metal does not provide a yield.
Other precious metals also strengthened, with silver prices rising 1.2 per cent to $76.03 per ounce, platinum strengthening 1.6 per cent to $1,979.30 per ounce, and palladium rising 1.3 per cent to $1,495.95 per ounce.