Global spot gold prices continued their ascent on 1/4, reaching 4,704 USD per ounce. This follows a significant rise on 31/3, when prices climbed 157 USD to close at 4,667 USD.

Global gold prices surged from the 31/3 session. Chart: Kitco

The rally in gold was partly driven by reports from the Wall Street Journal, citing US government sources, that President Donald Trump is prepared to halt military action against Iran, even with the Strait of Hormuz largely blockaded. This development hints at a potential de-escalation of Middle East tensions. However, Defense Secretary Pete Hegseth cautioned that the next few days are critical, warning Tehran of escalating conflict if no agreement is reached.

A weakening US dollar also contributed to gold's appeal, making it more affordable for international buyers. Peter Grant, vice president of Zaner Metals, told Reuters, "The upward movement in gold indicates investors are expecting tensions in the Middle East to ease. However, we need this to continue longer to confirm the trend".

Grant believes gold prices will see long-term gains, supported by fundamental factors such as the de-dollarization trend and ongoing central bank gold purchases. Goldman Sachs projects gold to reach 5,400 USD by the end of the year.

Despite the recent gains, gold experienced its sharpest monthly decline since October 2008. Inflation concerns and expectations of rising interest rates, fueled by the Middle East conflict, led to gold losing about 12% in March. Silver also saw a significant drop of 20% last month.

The US stock market also saw significant gains, with all ba major indices recording their strongest session since May 2025. The Dow Jones Industrial Average (DJIA) surged 1,125 points, a 2,5% increase. The S&P 500 climbed 2,9%, and the Nasdaq Composite advanced 3,8%.

The prospect of an end to the conflict boosted Wall Street. Technology stocks, which had faced considerable pressure since the conflict began, saw strong rebounds. Chipmaker Nvidia gained 5,6%, and software giant Microsoft rose 3,1%.

Eric Diton, President of Wealth Alliance, observed, "Any step towards ending the conflict makes the stock market happy, leading to gains. However, if the oil issue remains unresolved, pressure will persist".

Yesterday, Brent crude closed down 3,4 USD (5%) at 104 USD per barrel, while West Texas Intermediate (WTI) fell 1,5% to 101,3 USD. This decline followed reports from multiple news agencies stating that Iranian President Masoud Pezeshkian declared his nation's readiness to end the conflict, provided security guarantees are met.

However, oil prices saw a slight rebound this morning, with Brent crude reaching 104,6 USD and WTI at 102 USD.

Ha Thu (according to Reuters)