Gold prices jumped over 3% on Wednesday to reach their highest level in more than a week. The rally coincided with a decline in both the U.S. dollar and oil prices.
U.S. President Donald Trump reported significant progress in negotiations toward a U.S.-Iran peace agreement. Analysts suggest a deal could normalize shipping through the Strait of Hormuz and reduce inflationary pressure from oil.
Easing inflation may allow the Federal Reserve to consider interest rate cuts in late 2026. The prospect of lower rates and a weaker dollar increases investor demand for non-yielding gold.