Gold Prices Surge as Rate Hike Odds Plummet

0:00On March 25, gold prices jumped 2% on Wednesday, rebounding from a 4-month low of $4,098 per ounce hit just two days earlier. Spot gold climbed 1.9% to $4,558 per ounce by 605 AM Eastern time, while April U.S. Gold futures surged 3.5% to $4,556. Falling oil prices, down more than 5% that day, helped common flation fears tied to the U.S. Israel tensions with Iran. Optimism grew around possible ceasefire talks from Washington, even as Iran's military dismissed claims of negotiations. Investors reacted by slashing odds of a federal reserve rate hike by December to just 16% down from 25% late last week. Higher energy costs had earlier fueled worries of sticky inflation and tighter policy, which hurts Gold's appeal. Fed Governor Michael Barr noted on Tuesday that rates might stay steady for some time before any cuts.

1:05Meanwhile, other metals follow suit, with silver up 2.2% to $72 and 76 cents per ounce, platinum gaining. 1.3% and palladium rising 1.1%. As these market shifts play out against the backdrop of global conflicts, precious metals could see steadier demand if rate cut hopes build further.