Key Highlights
- Gold futures climbed 3.8% to reach $4,864.40 per ounce following the ceasefire declaration
- Silver futures jumped 7.9%, while spot prices increased 6% to $77.38 per ounce
- President Trump announced via social media a two-week halt to military operations against Iran
- Crude oil plunged over 15% while the dollar index declined amid the diplomatic breakthrough
- Precious metals had previously declined during escalating tensions due to inflation worries and interest rate outlook
Precious metals experienced significant gains Wednesday following President Donald Trump’s announcement of a two-week ceasefire agreement with Iran, effectively suspending planned military operations.
Continuous gold futures advanced 3.8% to settle at $4,864.40 per ounce. Spot gold increased 2.7% to $4,832.51 per ounce, marking the highest trading level observed since March 19.
Silver demonstrated even more impressive gains during the session. Silver futures advanced 7.9%, with spot silver posting a 6% increase to $77.38 per ounce. Platinum similarly benefited, rising 4.2% to reach $2,044.60 per ounce.
Through a social media post, Trump revealed that the United States would pause military operations for a two-week period. According to his statement, the U.S. had successfully achieved its primary military goals.
Trump Halts Iran Strikes for Two Weeks Amid Ceasefire Push
U.S. President Donald Trump said on Truth Social that, following discussions with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, and conditional upon Iran’s agreement to the immediate, full, and… pic.twitter.com/npInV48tUR
— Wu Blockchain (@WuBlockchain) April 7, 2026
The ceasefire declaration arrived with less than two hours remaining before an 8:00 p.m. ET deadline that financial markets had been monitoring intensely. Earlier that day, Trump had delivered serious warnings regarding potential consequences for non-cooperation.
Pakistan served as the mediator for the ceasefire agreement following urgent diplomatic negotiations. The truce includes conditions requiring Iran to maintain open shipping lanes through the Strait of Hormuz.
The strategic Strait of Hormuz is responsible for approximately 20% of worldwide oil transportation. Iranian officials indicated conditional agreement to permit safe maritime passage throughout the ceasefire timeframe.
Trump additionally stated that the United States would provide assistance in resolving shipping congestion within the Strait.
Market Response to Ceasefire
Oil prices tumbled more than 15% immediately following the ceasefire announcement. Risk-oriented assets experienced rallies while the U.S. Dollar Index declined nearly 1% during Asian market hours on Wednesday.
A declining dollar typically enhances gold’s attractiveness for international buyers holding other currencies, generally providing price support.
Interestingly, both gold and silver had experienced downward pressure throughout the Iran conflict period. Elevated energy costs had intensified inflation concerns, diminishing market expectations for near-term Federal Reserve interest rate reductions.
Since precious metals like gold and silver generate no interest income, their appeal typically diminishes when interest rates are anticipated to remain elevated.
Looking Ahead
Market participants are now focused on Friday’s release of the U.S. Consumer Price Index report covering March. Forecasts anticipate the headline inflation figure will show monthly increases, primarily attributed to elevated fuel expenses.
This economic data could significantly influence Federal Reserve policy expectations in upcoming months.
Within industrial metals, copper futures traded on the London Metal Exchange gained 2.8% to $12,691.33 per ton. U.S.-based copper futures increased 2.7% to reach $5.74 per pound.
Friday’s CPI release will represent the initial major economic indicator revealing how the recent spike in energy prices has impacted overall inflation levels.
