Gold settles higher amid geopolitical uncertainty

Gold bars

Gold prices rose on Wednesday, supported by bargain hunting as investors took advantage of lower prices amid geopolitical uncertainty following the US decision to extend the ceasefire with Iran.

Gold futures for June delivery increased by 0.70%, or $33.40, to $4,753 per ounce.

As for silver, futures for April delivery leapt by 1.94%, or $1.482, to $77.893 per ounce.

Gold benefited from investors buying the dip after futures fell to their lowest level in more than a week in the previous session, although geopolitical uncertainty capped gains.

Tensions in the Middle East escalated after Iran seized two vessels in the Strait of Hormuz, while US President Donald Trump reaffirmed the continuation of the maritime blockade on Iranian ports without specifying a clear timeline for ending the ceasefire he extended yesterday.