FX.co ★ Gold Extends Rebound

Gold prices climbed above $4,730 per ounce on Wednesday, supported by a weaker US dollar amid signs of possible de-escalation in the Middle East. President Donald Trump said Iran had requested a ceasefire but stressed that Washington would only consider such a deal once the Strait of Hormuz is fully operational, warning of further escalation if attacks on vessels persist.

These developments reduced immediate demand for traditional safe-haven assets, helping to pull oil prices back from recent highs, while the dollar index eased from the ten-month peak reached on Monday. Upside in gold, however, was limited as the decline in the 10-year US Treasury yield stalled after a 37 basis-point jump in March, following fresh data showing the private sector added 62,000 jobs and retail sales rose 0.6%.

Even after a drop of more than 13% in March, gold remains highly sensitive to expectations that the Federal Reserve will keep interest rates unchanged this year, as traders balance a resilient US economy against evolving geopolitical risks.