Gold Hits Two Week High as Trump Signals Possible Conclusion to Conflict with Iran

Gold hits a two week high at $4,717 per ounce after President Trump suggests the war with Iran could conclude shortly, causing the U.S. dollar to soften.

By: AXL Media

Published: Apr 1, 2026, 4:17 AM EDT

Source: Reuters

Market Reaction to Presidential De-escalation Signals Gold prices experienced a significant recovery on Wednesday, reaching their highest level since March 20 as global markets reacted to shifting rhetoric from the White House. The surge was primarily triggered by comments from President Donald Trump, who indicated that the conflict with Iran might wind down within a two to three week timeframe. This optimism led to a 0.4 percent decline in the U.S. dollar, making gold more attractive to international buyers. Spot gold rose 1 percent to $4,717.82 per ounce, while U.S. gold futures for April delivery saw an even sharper gain of 1.4 percent, trading at $4,744.30.

Strategic Pivot and the Strait of Hormuz The current market movement reflects a complex recalculation of geopolitical risk. Analysts suggest that the prospect of a resolution, even without the immediate reopening of the Strait of Hormuz, has reinvigorated both equity and commodity markets. President Trump noted that Tehran would not necessarily need to sign a new deal as a prerequisite for the cessation of hostilities. This shift in stance has provided a much needed reprieve for bullion, which suffered its worst monthly decline since 2008 throughout March, falling 11 percent as the war drove oil prices higher and stoked fears of aggressive interest rate hikes.

The Relationship Between Real Yields and Bullion The recovery in gold prices is intrinsically tied to shifting expectations for Federal Reserve policy. Prior to the war, traders had anticipated at least two interest rate cuts in 2026; however, those expectations were almost entirely priced out as the conflict escalated. Strategists now suggest that if de-escalation proves genuine, the focus may return to Federal Reserve easing. Lower real yields traditionally provide a tailwind for non-yielding assets like gold. However, market participants remain cautious, noting that previous rounds of constructive dialogue have stalled before reaching a definitive conclusion.

Oil Market Friction and Infrastructure Concerns Despite the cooling of political rhetoric, oil prices remained elevated on Wednesday, highlighting a disconnect between diplomatic hopes and physical reality. Even if a ceasefire is achieved, significant damage to energy infrastructure in the Middle East is expected to keep global supplies tight for the foreseeable future. This persisten...