Gold bars stored in a vault in Munich on January 28, 2026.
Angelica Warmsreuter
Gold prices rose on Wednesday as falling oil prices eased concerns about continued inflation after reports the U.S. government is working on a proposal to end conflicts in the Middle East.
Spot gold prices rose nearly 2% to $4,558.81 an ounce. gold futures Prices for April delivery rose more than 3% to $4,552.30 an ounce.
spot gold
US President Donald Trump said on Tuesday that the US and Iran were “currently negotiating”, suggesting Iran was keen to reach a peace deal despite the Islamic Republic denying direct talks with the US.
President Trump said in the Oval Office that he decided to rescind his recent threat to order attacks on Iran’s energy infrastructure “based on the fact that we are negotiating.”
Asked to further explain his axis, Trump said, “They’re talking to us, and they’re talking to us in a logical way.”
However, Iran’s top military spokesperson denied that talks were taking place, Reuters reported.
“As I have always said…people like us will not do business with you. Not now and never will,” Ebrahim Zolfakari said on state television, the news agency reported.
Overnight, the Iranian government confirmed that it would allow “non-hostile” ships to pass through the Strait of Hormuz.
“Non-hostile vessels belonging to or associated with other countries may benefit from safe passage through the Strait of Hormuz in coordination with competent Iranian authorities, provided they do not participate in or cooperate with offensive operations against Iran and comply with the declared security rules and measures,” the government said in a statement on X.
The blockage of the waterway, a key oil transport route, has caused energy prices to soar for almost four weeks since the war began.
Oil prices fell on Wednesday morning. International benchmark Brent crude oil futures fell about 5% to $99.13 a barrel, while U.S. West Texas Intermediate futures fell about 4% to $88.42 a barrel.
The dollar index, which measures the dollar’s strength against a basket of currencies, fell 0.17% in early Asian hours.
However, gold prices are still about 17% below their late January highs.
Goldman Sachs said the recent decline in gold prices is largely consistent with historical patterns, with rising interest rate expectations and market volatility being the main drivers of the decline.
“Given the existing pricing framework, we don’t think this decline is surprising,” Daan Struiben, co-head of global commodity research at the bank, said on Wednesday. He noted that rising interest rate expectations are weighing on investor demand, particularly through gold-backed ETFs, which are “very interest rate sensitive.”
Struiben told the media at a press conference that episodes of extreme market stress can also put pressure on gold bullion, as investors facing margin calls tend to sell gold along with other assets.
He also suggested that gold’s recent rally has outpaced its fundamentals and that some of the correction reflects “some normalization.”
Still, Goldman maintains a structurally bullish outlook, expecting gold to reach $5,400 by year-end, supported by continued central bank purchases as countries seek to diversify into assets with “lower geopolitical and financial risk.”
