Gold prices jumped sharply on Wednesday, rising more than 2% as the US dollar weakened. When the dollar drops, gold becomes cheaper for people using other currencies, which often pushes demand higher.
Spot gold climbed 2.5% to $4,587.09 an ounce, while US gold futures for April delivery moved even higher, gaining 4.2% to $4,586.10.
At the same time, oil prices slipped below $100 a barrel. Lower oil prices helped calm fears about rising inflation and possible interest rate hikes around the world. That gave gold another boost, since investors often turn to it when they’re unsure about the economy.
There’s also growing hope for stability on the geopolitical front. Reports suggest that the United States has put forward a 15-point plan to help end the ongoing war, with signs that negotiations may be moving forward. That added to the overall market optimism.
Other precious metals followed gold’s lead. Silver jumped 3.6% to $73.78, platinum rose 2.2% to $1,978.10, and palladium edged up 1.5% to $1,461.56.
Overall, it was a strong day for metals, driven by a mix of a weaker dollar, falling oil prices, and improving global sentiment.
