Gold Surges to Three-Week Peak After Trump Declares Temporary Iran Ceasefire

Gold climbed sharply, hitting a three-week peak as news broke of President Donald Trump's decision to halt strikes on Iran for two weeks. The metal rallied amid a weaker U.S. dollar, gaining ground as markets digested the ceasefire news that dialed down the risk of immediate regional conflict.

Spot gold jumped about 2.7%, reaching $4,832.51 an ounce early in U.S. trading, not seen since mid-March. Gold futures also echoed the move, rising to just above $4,857 per ounce, reflecting a strong appetite for the safe-haven commodity.

This rally came on the back of Trump's social media announcement that military action against Iran was being suspended for a fortnight, signaling that the U.S. had achieved its main objectives. The ceasefire, brokered through last-minute diplomacy involving Pakistan, hinges on Iran ensuring safe maritime traffic through the critical Strait of Hormuz.

Oil prices took a beating, plunging more than 15% as traders reacted to the easing geopolitical tensions. The drop in crude demand pressure spilled over to currency markets, with the USD Index sliding nearly 1% during Asian sessions. A weaker dollar typically makes gold and other commodities pricier for holders of other currencies, adding fuel to gold's gains.

Silver and platinum also enjoyed a sharp lift, with silver rising 6% to around $77.38 and platinum up over 4% near $2,045 an ounce, marking a broad precious metals boost amid the market's relief.

Meanwhile, copper futures on the London Metal Exchange climbed by nearly 3%, indicating industrial metals were also catching a breather from earlier sell-offs. Investors eyed upcoming economic data closely, including the U.S. consumer price index report, as lingering inflation concerns still spook markets despite the ceasefire news.

The renewed calm in the Strait of Hormuz, a vital conduit for nearly 20% of the world's oil shipments, suggests some short-term stability in energy flows, though the situation remains fragile. U.S. officials pledged to assist in easing traffic congestion, indicating an active role in managing the maritime corridor during the ceasefire period.

Given recent volatility fueled by elevated tensions, today's price actions in gold and commodities underscore how sensitive markets remain to geopolitical developments in the Middle East. Whether this two-week pause sets a new course or merely delays the next flare-up remains an open question.