Gold bars are stored in a safe deposit room in Munich, Jan. 28, 2026.<\/p>\n
Angelika Warmuth | Reuters<\/p>\n
Gold prices climbed on Wednesday as declining oil prices helped temper worries about persistent inflation, following reports that Washington is working on a proposal to end the Middle East conflict.<\/p>\n
Spot gold<\/a> prices were last up 2.56% at $4,588 per ounce, while gold futures<\/a> for April delivery were last seen over 4% higher at $4,597.7 per ounce.<\/p>\n U.S. President Donald Trump said Tuesday the U.S. and Iran are “in negotiations right now” and suggested Tehran is eager to make a peace deal, even as the Islamic Republic has denied it is in direct talks with Washington.<\/p>\n Speaking in the Oval Office, Trump said he decided to back off from his recent threat to order strikes on Iranian energy infrastructure “based on the fact we’re negotiating.”<\/p>\n “They’re talking to us, and they’re talking sense,” Trump said when asked to further explain his pivot.<\/p>\n Oil prices fell following Trump’s comments. International benchmark Brent crude<\/a> futures fell around 6% to $98.31 per barrel, while U.S. West Texas Intermediate futures<\/a> were also down roughly 5% at $87.65 per barrel.<\/p>\n The dollar index, which measures the strength of the greenback against a basket of currencies, was down 0.17% early Asia hours.<\/p>\n Gold prices, however, remain about 17% below their late-January peak.<\/p>\n Goldman Sachs said the recent pullback in gold prices was largely in line with historical patterns, citing higher interest rate expectations and market volatility as key drivers behind the decline.\u00a0<\/p>\n “We don’t think that the decline \u2026 is surprising in light of our existing pricing framework,” said the bank’s co-head of global commodities research Daan Struyven on Wednesday. He noted that rising rate expectations have weighed on investor demand, particularly through gold-backed ETFs, which are “very rate sensitive.”\u00a0<\/p>\n Episodes of extreme market stress can also pressure bullion, Struyven told the media in a briefing call, as investors facing margin calls tend to sell gold alongside other assets.<\/p>\n He also suggested that gold’s latest rally has overshot fundamentals, with part of the correction reflecting “a bit of normalization.”\u00a0<\/p>\n Still, Goldman has maintained a structurally bullish outlook, forecasting gold to reach $5,400 by year-end, underpinned by continued central bank buying as countries seek to diversify into assets with “lower geopolitical and financial risks.” <\/p>\n