Gold Soars Over 5% as Geopolitical Tensions Ease, US Economic Data Softens
Gold and silver prices surged on Wednesday as investors responded to easing geopolitical tensions and softer US economic data. The combined market capitalization for both metals increased by more than $1.3 trillion over the past 24 hours, with gold climbing more than 5% to around $4,257 per ounce.
The rally came as the US dollar lost momentum and Treasury yields remained under pressure following weaker labor market data. Lower-than-expected ADP private payroll figures and softer JOLTS job openings reduced expectations for aggressive Federal Reserve policy tightening.
Market attention also turned to reports that the United States, Iran, and Oman were discussing a temporary agreement to reopen the Strait of Hormuz, which created additional support for bullion. Gold's total market value increased by about $1.135 trillion over the past day, while silver added roughly $212 billion.
Veteran trader Peter Brandt noted that gold has broken above a long-term descending trendline and formed a Cup-with-Handle pattern, which shifted the technical outlook higher. However, he also warned traders against assuming the market has already established a lasting bottom.