Ammon News - Gold prices climbed ‌to a near three-week high on Wednesday as markets reassessed near-term risks after U.S. President Donald Trump agreed to suspend bombing and attacks on Iran for two weeks, easing fears of energy-driven inflation.

Spot gold was up ​2.5% at $4,819.25 per ounce, as of 0534 GMT. Earlier in the session, bullion rose ​more than 3% to its highest level since March 19.

U.S. gold futures for ⁠June delivery gained 3.5% to $4,847.70.

Trump said Washington had agreed to a two-week pause in attacks and received ​a 10-point proposal from Iran what he described as a workable basis for negotiations.

His comments followed ​earlier warnings that Tehran must reopen the Strait of Hormuz or risk U.S. retaliation on its civilian infrastructure.

Iran's Supreme Security Council said negotiations with the United States would begin on April 10 in ‌Islamabad, ⁠after it submitted its proposal via Pakistan, although it added that the talks did not signal an end to the war.

Rising energy prices could fuel inflation and complicate central banks' decision on interest rates. While gold is often seen as an hedge against inflation and uncertainty, its appeal tends ​to weaken in a ​high-interest-rate environment as ⁠it offers no yield.

Spot silver jumped ​5.5% to $76.91 per ounce, platinum gained 3.9% to $2,034.65 and palladium added 4.9% at $1,541.71.

Reuters