Gold prices recover from a one-week low following the extension of the US–Iran ceasefire.

Gold prices climbed during Asian trading on Wednesday, rebounding from a one-week low after the U.S. extended its ceasefire with Iran indefinitely, though uncertainty around future peace negotiations persisted.

The precious metal had come under pressure in the previous session after Federal Reserve Chair nominee Kevin Warsh indicated he had not assured President Donald Trump of any interest rate cuts if confirmed.

Spot gold gained 0.9% to $4,763.66 per ounce, while gold futures advanced 1.3% to $4,782.21/oz as of 02:45 ET (06:45 GMT). Prices continued to trade within the $4,700–$4,900 range observed over the past two weeks.

Other precious metals also posted gains, with spot silver rising 2.4% to $78.5335/oz and spot platinum increasing 2.3% to $2,087.15/oz.

Iran peace talks remain uncertain despite ceasefire extension

On Tuesday, Donald Trump announced an indefinite extension of the ceasefire with Iran, opening the door for further negotiations between Washington and Tehran.

Despite the extension offering some near-term relief, the outlook for future peace talks remains unclear. Expected discussions between the U.S. and Iran, which were slated for Tuesday, collapsed at the last minute.

Trump also stated that a naval blockade against Iran would stay in place, prompting backlash from Iranian officials, who described the move as an “act of war.”

Gold has faced difficulties since the conflict began, as safe-haven demand has been outweighed by concerns over the war’s potential to drive inflation.

Since the outbreak of the conflict in late February, the metal has traded more like a risk-sensitive asset, often moving in line with equities as market sentiment shifts with developments in the situation.

Warsh signals no pledge on rate cuts, hints at major Fed policy changes

Precious metals came under pressure on Tuesday as the U.S. dollar strengthened, supported by market reaction to testimony from Kevin Warsh.

Warsh stressed the importance of the Federal Reserve’s independence from political influence, while also pointing to the possibility of a significant policy overhaul at the central bank if he is confirmed as chair.

A former Fed governor, Warsh is viewed as less dovish than markets had anticipated. His nomination in late January had already sparked sharp declines in gold and other precious metals.

Although his confirmation appears likely, the timeline remains uncertain. Several Republican leaders have opposed moving forward with Warsh’s appointment until the Trump administration ends its ongoing probe into current Fed Chair Jerome Powell.

As a result, Powell is expected to remain in his role beyond the scheduled end of his term on May 15, particularly if Congress delays Warsh’s confirmation.