Gold rises, silver jumps over 5%

Gold and silver prices closed Tuesday higher, supported by a weaker US dollar and remarks by the US President indicating the possibility of resuming talks with Iran this week.

Gold futures for June delivery increased by 1.73%, or $82.70, to $4,850.10 per ounce.

Silver futures for April delivery surged 5.12%, or $3.868, to $79.391 per ounce.

This was driven by a decline in the dollar, and Trump’s announcement that negotiations to end the war with Iran could resume in Pakistan within the next two days.

US producer prices rose less than expected in March, with stable services costs, although higher energy prices due to the war with Iran continued to fuel inflationary pressures, according to official data.

Although gold is an inflation hedge, it becomes less attractive in high-rate environments as it does not yield returns. Traders currently see a 33% probability of a US rate cut this year, down from earlier expectations of two cuts before the outbreak of the war.