Gold prices surged over 2% as oil declined and inflation concerns eased following reports of U.S.-Iran negotiations on Middle East peace. Spot gold settled near $4,548 per ounce while April futures climbed over 3% to $4,545.50. The rally reflects reduced geopolitical tensions, with oil prices falling sharply as Iran confirmed safe passage through the Strait of Hormuz for non-hostile vessels. Brent crude dropped 5% to $99.13 per barrel and U.S. West Texas Intermediate fell 4% to $88.42. Despite the gains, gold remains approximately 17% below its late-January peak. Goldman Sachs maintains a bullish outlook, projecting gold could reach $5,400 per ounce driven by central bank purchases, though recent pullbacks align with historical patterns tied to higher interest rate expectations and market volatility.
