Gold prices surged by 2.3%, reaching $4,811.66 per ounce on Wednesday, following U.S. President Donald Trump's announcement of a two-week ceasefire in attacks on Iran. This decision has alleviated concerns over energy-driven inflation, prompting a relief rally in the gold market. U.S. gold futures for June delivery also saw a significant increase of 3.3%, climbing to $4,840.20. Trump's announcement follows prior warnings regarding Iran's control over the Strait of Hormuz and a 10-point proposal from Iran that could serve as a basis for negotiations. Despite the positive movement, gold prices have declined over 8% since the onset of the Iran conflict on February 28. Analysts note that while gold is traditionally viewed as a hedge against inflation, its attractiveness diminishes in high-interest-rate environments. The market is now closely monitoring the Federal Reserve's upcoming meeting minutes, which could provide further insights into monetary policy amid rising energy prices that may push inflation above 4% by year-end.