Gold prices rebounded on Wednesday, April 22, 2026, climbing over 1% to approximately $4,767 an ounce after a two-day decline. The primary catalyst was US President Donald Trump's indefinite extension of a ceasefire with Iran, which provided more time for potential peace negotiations and eased immediate geopolitical fears. Spot gold settled at $4,763.66, while gold futures reached $4,782.21.
The geopolitical situation remains fragile, however. Despite the ceasefire extension, planned US-Iran peace talks scheduled for Tuesday failed to materialize after Iran refused to attend, leading US Vice President JD Vance to cancel a related trip to Islamabad. The Strait of Hormuz remains closed to shipping, with Iran labeling the ongoing US naval blockade an "act of war" and refusing to reopen the critical waterway. President Trump stated he would withhold further military action pending a new proposal from Iran.
Simultaneously, gold faced countervailing pressure from Federal Reserve policy expectations. Kevin Warsh, President Trump's nominee for Fed Chair, testified before the Senate Banking Committee on Tuesday. He explicitly stated he had made no promises to cut interest rates, emphasizing the central bank's independence and signaling a hawkish stance likely to maintain higher rates for longer to combat persistent inflation. Markets interpreted his comments as bearish for non-yielding assets like gold. His confirmation timeline is uncertain, hinging on the Trump administration dropping an investigation into current Chair Jerome Powell, who may stay in his role past his term end on May 15 if the process is delayed.
Other commodities also saw significant movement. Brent crude oil surged over 2% to reclaim the $100-per-barrel mark, trading at $100.26, following reports of gunfire attacks on container ships in the Strait of Hormuz by Iran's Revolutionary Guards Navy. Copper prices on the London Metal Exchange (LME) rose 1.3% to $13,401 a ton, buoyed by improved risk sentiment from the ceasefire, though gains were capped by Middle East uncertainty. A notable price premium for COMEX copper over LME copper is incentivizing shipments to the US, with inventories in COMEX warehouses nearing a record high of 544,887 tons.
Analysts note that gold has lost around 10% since the Iran conflict began in late February and has been trading in a narrow range between $4,700 and $4,900, suggesting the market has largely priced in the current level of geopolitical risk. A major escalation or shift in economic conditions would be needed for a decisive price move.
