Can You Still Trust Gold Or Are Trump's Mood Swings Turning It Into A Trap? Gold prices surged 4 per cent in a single session, breaking above $4,550 an ounce, as hopes of US-Iran peace talks sparked renewed interest in the metal. The rally followed a nine-day losing streak, with traders reversing their positions after President Donald Trump hinted at potential progress in negotiations. Trump suggested Iran had offered a "present" tied to energy flows through the Strait of Hormuz, though Tehran has yet to confirm its stance. Talks could begin as early as Thursday, creating a shift in market sentiment. The unexpected rise has raised questions about gold’s role as a safe-haven asset. Typically, peace signals would weaken demand for gold, but the metal’s price climbed despite the uncertainty. Analysts attribute the surge to short covering, with traders who had bet against gold rushing to close positions. Reports of a pause in strikes on Iranian energy infrastructure and easing fears of oil-driven inflation also contributed to the rebound. A softer dollar outlook further supported the move, as investors seek alternatives to the US currency. However, the broader trend remains bearish. Gold is still down nearly 20 per cent from its January 2026 peak of $5,626 an ounce, reflecting a steep correction. Bengaluru-based strategist Naveen PMT described the rally as a "massive swing" driven by headline risk volatility. He noted that the market is shifting from war panic to peace optimism, with the rise appearing more relief-driven than a genuine conviction in gold’s value. The volatility has left investors questioning whether gold is still functioning as a hedge. Dr. Renisha Chainani, Head of Research at Augmont, explained that the recent moves follow a familiar pattern under stress.#gold_prices #donald_trump #strait_of_hormuz #us_iran_peace_talks #naveen_pmt
