Market News

Key Points

• Gold prices rally, but remain about 17% below January peak.
• Goldman Sachs stays bullish, sees $5,400 gold on central bank buying despite recent normalization

Gold prices climbed on Wednesday as declining oil prices helped temper worries about persistent inflation, following reports that Washington is working on a proposal to end the Middle East conflict.

Spot gold prices pared earlier gains to settle around $4,548.07 an ounce by 3:46 a.m. ET, representing a rise of 1.6%. Gold futures for April delivery were last seen over 3% higher at $4,545.50 per ounce.

U.S. President Donald Trump said Tuesday the U.S. and Iran are “in negotiations right now” and suggested Tehran is eager to make a peace deal, even as the Islamic Republic has denied it is in direct talks with Washington.

Speaking in the Oval Office, Trump said he decided to back off from his recent threat to order strikes on Iranian energy infrastructure “based on the fact we’re negotiating.”

“They’re talking to us, and they’re talking sense,” Trump said when asked to further explain his pivot.

However, the top spokesperson for Iran’s military denied talks were taking place, Reuters reported.

“As we have always said... no one like us will make a deal with you. Not now. Not ever,” Ebrahim Zolfaqari said on state-run television, according to the news agency.