Gold reached its highest level in almost two weeks on Wednesday, buoyed by a softer U.S. dollar after President Donald Trump indicated the war with Iran may deescalate in the near term. The move in bullion prices caught investor attention as risk sentiment shifted in the wake of clearer geopolitical signals.
The Iranian President has signaled a potential end to the conflict, while U.S. President Donald Trump has suggested a military withdrawal could occur within two to three weeks.
President Donald Trump told the New York Post that the war with Iran is likely to conclude soon. Speaking to reporters in the Oval Office, Trump stated, “We will be withdrawing soon,” specifying that this pullout could happen within two or three weeks. “We leave because there’s no reason for us to do this,” added Trump while saying that the U.S. does not need to make a deal with Iran as the U.S. has completed what it came to do, which is destroying Iran’s nuclear power.
Spot gold advanced 1.21% to $4,726.42 per ounce, notching its strongest showing since March 20. April gold futures rose 1.95% to $4,738. The U.S. dollar weakened by 0.4%, lowering the currency cost of gold for international buyers and lending further support to the precious metal.
Goldman Sachs continues to project gold prices will climb to $5,400 per troy ounce by year-end 2026. Their view is anchored in the assumption that the Federal Reserve will reduce rates, speculative activity will revert to average levels, and central banks will persist in acquiring gold.
The war’s impact on energy supplies has fueled concerns around inflation and prompted markets to discount the likelihood of Fed rate reductions this year. In this context, Goldman Sachs estimates that gold’s fair value currently stands near $4,550 per ounce, based on pre-conflict macro policy hedges.
Addressing gold’s recent performance, Goldman Sachs analysts noted the metal’s response to inflation depends on the underlying causes. They explained that during supply-driven stagflation—such as the present situation—commodities tend to outperform gold. However, gold’s safe-haven appeal is strongest when financial system credibility is in question, including doubts around central bank effectiveness in containing inflation.
