Gold prices moved higher in global markets as investors reassessed risks following the decision by US President Donald Trump to temporarily halt military action against Iran. The development has shifted market sentiment, with traders adjusting expectations around inflation and geopolitical stability.
According to market data, gold climbed to its highest level in nearly three weeks after the announcement of a two-week pause in hostilities. Spot gold rose by around 2.5 per cent, while futures also recorded notable gains, reflecting renewed interest in the precious metal.
Analysts say the rise in gold prices is linked to changing perceptions of risk. While gold is traditionally considered a safe-haven asset during times of uncertainty, the temporary easing of tensions has also influenced inflation expectations, prompting investors to rebalance their positions.
The pause in attacks comes amid broader efforts to de-escalate the conflict, including proposals for negotiations between the United States and Iran. The easing of immediate military pressure has reduced fears of prolonged disruption in energy markets, particularly in key routes such as the Strait of Hormuz.
Market experts note that despite the recent gains, gold remains sensitive to developments in both geopolitics and monetary policy. The ongoing situation continues to create volatility, with investors closely watching upcoming economic indicators and central bank signals.
Other precious metals also followed an upward trend, indicating a broader shift in commodity markets. However, analysts caution that the situation remains uncertain, and any renewed escalation could quickly reverse current trends.
The latest movement in gold highlights how global markets are reacting to rapid geopolitical changes. While the temporary pause in conflict has provided short-term relief, investors remain cautious as negotiations unfold and long-term stability remains unclear.