Gold Prices Surge This Morning (8/4), Supported by US-Iran Temporary Truce

Gold prices continue to rise as the market reassesses short-term risks after U.S. President Donald Trump agreed to suspend bombing and attacks on Iran for two weeks, easing concerns of an immediate escalation.

Wednesday (8/4/2026) at 06:30 WIB, spot gold prices increased by 1.3% to US$ 4,765.59 per troy ounce, after rising 1.2% in the previous session.

Meanwhile, June 2026 gold futures contracts rose 2.3% to US$ 4,793.20 per troy ounce.

Support for gold prices comes after Trump said he agreed to suspend bombing and attacks for two weeks, and the United States has received a 10-point proposal from Iran which he described as a reasonable basis for negotiations.

The comments came after Trump previously set a deadline for Iran to reopen the Strait of Hormuz or face possible U.S. retaliation.

Pakistan, which has acted as a mediator between Washington and Tehran, has requested a two-week extension to allow diplomacy to proceed.

A senior Iranian official told Reuters that Tehran is reviewing the proposal positively.

Higher inflation resulting from rising energy prices could complicate the Federal Reserve's decision to cut interest rates.

Although gold functions as an inflation hedge and a safe haven asset during uncertain times, its appeal diminishes in a high-interest-rate environment due to lack of yields.

Prolonged disruptions in global oil trade could push U.S. inflation above 4% by year-end, with a greater potential increase in the short term, according to research by the Federal Reserve Bank of Dallas.

Having started the year strongly, gold has fallen about 10% since the Iran war began on February 28.

Market participants are awaiting the minutes from the Federal Reserve's March meeting, scheduled to be released today.

Meanwhile, China continues its gold buying spree, with the People's Bank of China (PBOC) extending purchases for the 17th consecutive month, according to data released Tuesday (7/4/2026).

Among other metals, spot silver prices rose 2.4% to US$ 74.70 per troy ounce, platinum also gained 1% to US$ 1,976.95 per troy ounce, and palladium increased 0.7% to US$ 1,479.75 per troy ounce.

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