Gold Jumps 2.8% on US 15-Point Ceasefire Draft, BMO Says
Gold climbed as much as 2.8% Wednesday after a 1.6% advance in the previous session, following a US 15-point ceasefire proposal aimed at resolving the Iran conflict. BMO Capital Markets analyst Helen Amos said expectations of an “off ramp” in hostilities are driving a rebound in bullion, despite Iran’s rejection.
1. Gold Price Movement
Wednesday’s session saw spot gold advance as much as 2.8%, with prices at $4,561.83 per ounce by midday, following a 1.6% gain in the prior day. Silver rose 2.1% to $72.70, while platinum climbed and palladium eased.
2. BMO Capital Markets Analysis
Helen Amos of BMO Capital Markets highlighted that the US’s 15-point ceasefire proposal signals an intent to find an "off ramp" in the Iran conflict, supporting bullion gains even after Iran rejected the plan.
3. Broader Market Context
U.S. stocks and bonds also rallied and oil prices dipped as investors assessed war dynamics. Elevated energy costs had previously bolstered inflation concerns and speculated interest rate hikes, acting as a headwind for non-yielding precious metals.