22.04.2026 08:02
Trump's decision to extend the ceasefire with Iran shifted the balances in global markets. While oil prices declined, inflation concerns eased, and these developments pushed gold higher. With increased risk appetite, the dollar weakened, and gains were seen in gold and other precious metals; the direction in the markets was reshaped.
The US decision to extend the ceasefire with Iran has strengthened expectations that tensions in global markets will ease. Along with this development lowering oil prices and alleviating inflation concerns, gold prices rose on Wednesday.
INCREASE IN OUNCE GOLD AND FUTURES CONTRACTS
Spot gold rose 0.9% to $4,755.11 per ounce. Gold had seen its lowest level since April 13 the previous day. US gold futures contracts rose 1.1% to $4,772.90.
TRUMP'S SURPRISE CEASEFIRE MOVE
US President Donald Trump announced that he will indefinitely extend the expiring ceasefire with Iran to allow time for peace talks. However, it was stated that this decision is unilateral and it is not yet clear whether Iran and the US ally Israel will accept this extension.
MARKETS PRICED IN REDUCED TENSION
According to analysts, the extension of the ceasefire strengthened the perception in markets that tensions in the Middle East have decreased. Marex analyst Edward Meir stated that if the ceasefire breaks down, the dollar could strengthen, oil and interest rates could rise, and this would put pressure on gold prices.
Following the ceasefire decision, risk appetite increased in global markets while stocks rose, the dollar declined, and oil prices fell.
OIL, INFLATION, AND GOLD BALANCE
Rising oil prices can trigger inflation by increasing production and transportation costs. Although gold is traditionally seen as a hedge against inflation, a high-interest-rate environment makes yield-bearing assets more attractive, reducing gold's appeal.
SHORT-TERM FRAGILE, LONG-TERM STRONG EXPECTATION
Standard Chartered noted that gold prices may remain volatile and fragile in the short term, while maintaining their expectation of a recovery in precious metals in the medium term and that gold could test record levels again.
FED UNCERTAINTY CONTINUES
On the other hand, Kevin Warsh, mentioned for the US Federal Reserve chairmanship, stated that he has not made any promises to US President Trump regarding interest rate cuts. In his message to the Senate, Warsh emphasized that he would preserve the central bank's independence.
INCREASE IN OTHER PRECIOUS METALS AS WELL
Parallel to the rise in gold, increases were also seen in other precious metals. Spot silver rose 1.5% to $77.84, platinum rose 1.5% to $2,067.25, and palladium increased 1.8% to $1,560.31.