Gold Prices Dip but Hold Weekly Gains Amid Iran Ceasefire Hopes

Gold prices slipped on Wednesday but remained positioned for weekly gains as investors closely monitored developments surrounding a potential permanent ceasefire between the United States and Iran. Spot gold fell 1% to $4,794.67 per ounce, retreating from a recent one-month peak, while gold futures edged down 0.7% to $4,817.26 per ounce.

Despite the daily pullback, bullion was still up roughly 1% for the week, reflecting a cautious return of risk appetite in global markets. Wall Street has already reclaimed record highs, erasing all losses accumulated since hostilities erupted in late February following joint U.S. and Israeli strikes on Iran.

Gold struggled throughout March as the conflict triggered a sharp rise in oil prices, stoking global inflation fears and raising expectations of potential interest rate hikes by central banks worldwide. Since gold yields no interest, a rising-rate environment tends to weigh heavily on its appeal. Adding to the pressure, investors gravitated toward the U.S. dollar as their preferred safe haven, partly because the United States, as a net energy exporter, remains relatively shielded from oil supply disruptions through the Strait of Hormuz.

President Donald Trump has expressed optimism that the conflict is "close to over," suggesting a permanent ceasefire could be finalized before King Charles visits the United States later this month. A second round of U.S.-Iran ceasefire talks is expected to resume imminently, following inconclusive negotiations held in Pakistan last weekend. White House Press Secretary Karoline Leavitt confirmed that diplomatic conversations remain "productive and ongoing."

A fragile two-week ceasefire is set to expire on April 21, but mediators are reportedly making headway on key sticking points, including Iran's nuclear program, the Strait of Hormuz closure, and war reparations. Analysts warn that gold's next directional move hinges on whether prices can firmly establish support above the $4,800 level.