Gold holds gains as Trump signals Iran war may end within weeks

Gold prices steadied on Wednesday after logging three straight days of gains, as US President Donald Trump indicated that the conflict with Iran could wind down within weeks, easing some safe-haven demand.

Bullion hovered near $4,670 an ounce in early Asian trading, following a sharp 3.5 per cent rally in the previous session. The gains came after Trump said Washington had largely achieved its military objectives and expected to exit the conflict within two to three weeks, potentially handing over responsibility for securing the Strait of Hormuz to other nations.

On the other side, signals from Iran also pointed to a possible de-escalation. State media cited President Masoud Pezeshkian as saying Tehran would be willing to end hostilities if its conditions were met.

The prospect of a ceasefire has tempered some of the geopolitical risk premium that had driven gold higher in recent sessions. However, the broader market backdrop remains fragile. The ongoing conflict in West Asia — now entering its fifth week — has disrupted energy flows and trade routes, fuelling concerns over a dual shock of rising inflation and slowing global growth.

Despite the recent rebound, gold remains under pressure on a monthly basis. Prices have fallen nearly 12 per cent in March, marking their steepest decline since the 2008 global financial crisis, as volatility across commodities and financial markets intensified.

As of early trading, spot gold was up 0.1 per cent at $4,670.78 an ounce. Other precious metals also edged higher, with silver gaining 0.2 per cent to $75.31, while platinum and palladium posted modest advances.