Bullion climbs up to 1.5% after comments suggest de-escalation, reducing inflation and rate-hike fears.
Gold futures recovered Wednesday, rising as much as 1.5% after a sharp decline in the prior session. The move followed remarks indicating the U.S.-Iran conflict may be nearing resolution, easing concerns over inflationary pressures and potential interest rate hikes.
Prices had dropped sharply on Tuesday amid broader risk-on sentiment. The dollar and Treasury yields also retreated, supporting gold’s rebound. Analysts noted the shift reflected reduced safe-haven demand as geopolitical risks waned.
Markets reacted swiftly, with gold regaining ground lost earlier in the week. The metal’s inverse relationship with yields and the dollar remained a key driver of short-term price action.