Ammon News - Gold prices rose 2% ‌on Wednesday, buoyed by a weaker dollar, while softer oil prices eased fears of inflation and higher-for-longer interest rates, amid hopes of a U.S.-Iran peace deal.

Spot gold was up 2% at $4,647.09 per ​ounce, as of 0415 GMT. U.S. gold futures for June delivery rose ​2% to $4,658.

U.S. President Donald Trump said on Tuesday he would briefly pause ⁠an operation to help escort ships through the Strait of Hormuz, citing progress toward ​a comprehensive agreement with Iran.

Gold gained as "oil prices retreated on reduction in geopolitical risk ​premium, after the U.S. confirmed that the ongoing fragile ceasefire between Iran is still intact, despite the skirmish that was seen at the start of this week," said Kelvin Wong, a senior ​market analyst at OANDA.

The U.S. dollar and crude oil prices eased after Trump indicated ​that a possible peace deal may be reached to end the war with Iran.

U.S. Secretary of ‌State ⁠Marco Rubio told reporters on Tuesday that "operation Epic Fury is concluded," adding that "we're not cheering for an additional situation to occur."

"Any signs of re-escalation of tension between the two of them, you will see gold prices seeing some form of profit-taking, or ​for short-term speculators to ​unwind their near-term ⁠net long position in gold," Wong said.

Elevated crude oil ​prices can stoke inflation, increasing the likelihood of higher interest rates. ​While gold ⁠is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing on its appeal.

Investors await the U.S. non-farm payrolls release later this week, which will test whether ⁠the ​economy remains resilient enough to keep the Federal Reserve's ​monetary policy on hold.

Spot silver rose 3.4% to $75.62 per ounce, platinum gained 2.4% to $1,999.95, and palladium was up ​2.6% at $1,524.59.

Reuters