Gold Prices Surge as Trump Pauses Iran Attacks

Precious metal reaches near three-week high as geopolitical tensions ease

Apr. 8, 2026 at 2:36am

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An extreme close-up photograph of a shiny gold bullion bar or gold coins, dramatically lit against a dark background to represent the weight and solidity of the precious metal as a safe haven asset.The pause in U.S.-Iran hostilities has provided a temporary reprieve for gold prices, but the longer-term outlook remains uncertain.Dallas Today

Gold prices climbed over 3% to a near three-week high on Wednesday as markets reassessed near-term risks after U.S. President Donald Trump agreed to suspend bombing and attacks on Iran for two weeks, easing fears of energy-driven inflation. The pause in hostilities came after earlier warnings that Iran must reopen the Strait of Hormuz or risk U.S. retaliation.

Why it matters

Rising energy prices could fuel inflation and complicate central banks' decisions on interest rates. While gold is often seen as an inflation hedge and a safe-haven asset during uncertain times, its appeal tends to weaken in a high-interest-rate environment as it offers no yield.

The details

Spot gold was up 2.3% at $4,812.49 per ounce, as of 0215 GMT. Earlier in the session, bullion rose more than 3% to its highest level since March 19. U.S. gold futures for June delivery gained 3.4% to $4,841.60. Trump said Washington had agreed to a two-week pause in attacks and had received a 10-point proposal from Iran what he described as a workable basis for negotiations.

  • On February 28, the Iran war erupted, causing gold prices to fall more than 8%.
  • On April 10, Iran's Supreme Security Council said negotiations with the United States would begin in Islamabad.

The players

Donald Trump

The President of the United States who agreed to suspend bombing and attacks on Iran for two weeks.

Iran's Supreme Security Council

The Iranian government body that said negotiations with the United States would begin on April 10 in Islamabad.

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What they’re saying

“This is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200 day-moving-average at $4,930 and then $5,000 will be key hurdles. Similarly, $80-$81 is a important level for silver.”

— Tai Wong, Independent metals trader

What’s next

Markets are now awaiting minutes, due later in the day, from the Fed's meeting in March.

The takeaway

The pause in U.S.-Iran hostilities has provided a temporary reprieve for gold prices, but the longer-term outlook remains uncertain as central banks navigate the risks of rising inflation and interest rate decisions.