Gold Jumps Above $4,050 as Trump Pauses Iran Strikes

Gold prices rebounded above $4,050 per ounce after President Donald Trump announced a pause on planned strikes against Iran. This move eased immediate geopolitical tensions that had earlier driven safe-haven demand to record highs.

The precious metal had surged to an all-time high of $4,150 earlier in the week as investors sought refuge from the threat of a broader Middle East conflict. However, the latest diplomatic shift triggered profit-taking and a pullback before buyers stepped in at lower levels.

Analysts note that while the pause reduces the immediate risk of a supply disruption in the Strait of Hormuz, it does not diminish gold's appeal as an inflation hedge. Central bank buying, elevated geopolitical uncertainty, and expectations that the Federal Reserve will begin cutting interest rates later this year continue to support gold prices.

The metal has gained roughly 25% since the start of the year, outpacing most major asset classes, as real yields remain low and fiscal deficits in major economies continue to expand.