KARACHI: Gold prices climbed to near a three-week high on Wednesday as markets reassessed short-term risks following a two-week pause in US attacks on Iran.
Spot gold rose 2.5% to $4,819.25 per ounce by 05:34 GMT. Earlier, bullion surged more than 3%, reaching its highest level since March 19.
US gold futures for June delivery gained 3.5% to $4,847.70.
The rally followed comments from US President Donald Trump, who said Washington had agreed to suspend attacks for two weeks and had received a 10-point proposal from Iran, which he described as a workable basis for negotiations.
The announcement eased earlier concerns over energy-driven inflation, which had fueled fears of escalating conflict.
“People went into this session thinking that escalation was very likely, but the announcement of a two-week truce kind of upended that expectation, and that was gold positive,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
Iran’s Supreme National Security Council said negotiations with the United States would begin on April 10 in Islamabad
