Gold, silver surge up to 7% on Iran-US ceasefire
What's the story
Gold prices have jumped by up to 3.1% today, crossing the $4,850 per ounce mark on COMEX. The surge comes after US President Donald Trump and Iran agreed to a two-week ceasefire in their ongoing conflict. Silver prices also witnessed a significant rise during Asian trading hours on Wednesday, increasing nearly 6.8% to $76.92 per ounce.
Market reaction
Global markets react positively to ceasefire agreement
The ceasefire agreement has had a positive impact on global markets. Oil prices fell below $100 per barrel, while the dollar weakened, further supporting gold prices as it is priced in US currency. Pakistan, acting as a mediator between Washington and Tehran, had requested a two-week extension to allow diplomatic efforts to progress.
Diplomatic developments
Iran and US to begin talks on April 10
Iran's Supreme Security Council announced that talks with the US would begin on April 10 in Islamabad. This announcement came after Iran submitted its proposal through Pakistan. However, the council stressed that these negotiations do not signify an end to the conflict.