Gold prices rose $4,600 per ounce on Tuesday, driven by growing optimism among traders that the conflict involving Iran could come to an end. Despite this short-term increase, gold has still recorded its steepest monthly decline in the past 17 years.
During early trading hours, gold prices surpassed $4,600 per ounce. However, the metal later gave up part of those gains and is now trading at around $4,560 per ounce. The fluctuation reflects ongoing uncertainty in global markets, where investors continue to respond quickly to political and economic signals.
One of the main factors behind the rise in gold prices is the weakening of the U.S. dollar. As the dollar declines, gold becomes more attractive to investors holding other currencies, which often pushes prices higher. This inverse relationship continues to play a key role in shaping gold market movements.
Analyst Ilya Spivak noted that recent remarks by Donald Trump have supported gold prices. Trump indicated that he intends to bring an end to the conflict with Iran, which has influenced investor sentiment. His comments have encouraged some traders to turn to gold as a safe-haven asset amid uncertainty.
According to The Wall Street Journal, Trump told his advisers that he would accept ending the war even if the Strait of Hormuz remains closed, leaving any reopening operation for a later stage. This statement has contributed to shifting expectations in global markets.
Despite the recent rebound, gold prices have dropped by about 13% this month. This marks the largest monthly decline since the 2008 global financial crisis. Analysts say the market remains volatile, and further political developments could continue to influence gold prices in the near term.
