Gold Prices Reach Two-Week Peak as Diplomatic Hopes Weaken Dollar Precious metals see a significant uptick as potential peace between the US and Iran lowers oil prices and eases concerns over Federal Reserve interest rate hikes. The global precious metals market experienced a significant rally on Thursday, with gold prices climbing to their highest level in two weeks. Spot gold prices rose by one percent to reach 4,735.32 dollars per ounce, while U.S. gold futures for June delivery saw an increase of 1.1 percent, landing at 4,745.90 dollars. This upward momentum was not limited to gold, as other precious metals also performed strongly. Spot silver surged by 3.4 percent to 79.93 dollars per ounce, platinum increased by 1.2 percent to 2,085.70 dollars, and palladium rose by 1 percent to 1,553.16 dollars, with all these assets hitting peaks not seen in over fourteen days.The primary driver behind this surge was a combination of a weakening U.S. dollar and a decline in crude oil prices, both fueled by renewed optimism regarding a potential peace agreement between the United States and Iran. President Donald Trump suggested that a swift conclusion to the conflict was possible, as Tehran reviewed a U.S. peace proposal.While the proposal aimed to formally end the hostilities, certain critical demands remained unresolved, including the suspension of Iran's nuclear program and the reopening of the Strait of Hormuz. Despite these lingering issues, the market responded positively to the possibility of a gradual reopening of the strait, which led to a drop in oil prices and a subsequent boost for stock markets. From a macroeconomic perspective, the dip in oil prices created a ripple effect across financial assets.Market analysts, including Fawad Razaqzada from City Index, noted that falling oil prices typically drive bond prices higher, which in turn depresses yields. This happens because investors begin to lower their expectations for aggressive interest rate hikes from central banks. Since gold and silver are non-yielding assets, they become more attractive when bond yields fall and the prospect of rate hikes diminishes.Additionally, the U.S. dollar hovered near its lowest point in more than two months, making gold more affordable for investors holding currencies other than the dollar. Investor sentiment was further influenced by data from the CME Group's FedWatch tool, which showed a decrease in the probability of a Federal Reserve rate hike by December. The bets dropped from 16 percent on Wednesday to approximately 12 percent on Thursday.Market participants are now closely watching the upcoming monthly U.S. employment report to gauge the Federal Reserve's likely trajectory for monetary policy throughout the remainder of the year. The interplay between employment data and inflation will be crucial in determining whether the Fed continues with a hawkish stance or pivots toward a more accommodative approach. Beyond immediate market fluctuations, long-term structural trends are also supporting the gold market.China's central bank has continued its aggressive accumulation of gold for eighteen consecutive months, with reserves reaching 74.64 million fine troy ounces by the end of March, up from 74.38 million in the previous month. This trend highlights a broader global shift away from dollar-denominated reserves toward gold. Such a movement is increasingly evident among BRICS+ nations, whose collective demand could fundamentally reshape the gold market's dynamics.Furthermore, reports of the Bank of France managing its gold reserves to generate profit further underscore the strategic value that central banks continue to place on the yellow metal in an uncertain global economy