09:14 AM EDT, 04/08/2026 (MT Newswires) -- Gold moved higher early Wednesday as the U.S. dollar plunged after the United States and Iran agreed to a two-week ceasefire and a likely re-opening of the Strait of Hormuz, sending oil prices back below US$100 per barrel and easing fears of rising inflation and slowing growth.

Gold for May delivery was last seen up $132.20 to US$4,816.90 per ounce, the highest since March 18.

The United States and Iran on Tuesday agreed to a ceasefire brokered by Pakistan a few hours before a deadline set by U.S. President Trump to attack Iran's power plants and bridges. In a social-media post, Trump said the two countries will begin negotiations based on a 10-point plan from Iran, which includes Iran retaining control of the key strait, keeping its stores of enriched uranium, the removal of all U.S. forces from the region and an end to Israeli attacks on Lebanon.

Though talks over a potential final deal to end the war will continue with no guarantee hostilities will not resume, the potential resumption of shipping through the Strait of Hormuz and lower oil prices are easing fears of rising inflation which could force central banks to raise interest rates.

"Precious metals...found support in expectations that easing inflation pressures could reopen the path for rate cuts. Industrial metals also advanced, with lower energy prices helping to alleviate recession concerns and improve the demand outlook," Saxo Bank noted.

The dollar was sharply lower following the deal, with the ICE dollar index last seen down 1.25 points to 98.61, the lowest since March 2. Treasury yields also retreated, with the U.S. two-year note last seen paying 3.742%, down 5.6 basis points, while the yield on the 10-year note was down 5.9 points to 4.241%.