Middle East Tensions Ease as Rate Cut Expectations Rise, Gold Nears $4900

April 17 International gold prices surged sharply Wednesday, driven by easing Middle East tensions and rebounding expectations for Federal Reserve rate cuts. Spot gold climbed nearly 2% intraday, approaching the $4,900-per-ounce mark. On the news front: Iranian Foreign Minister Abbas Araqchi said the Strait of Hormuz will remain open during the ceasefire, easing market fears of energy supply disruptions. That pushed oil prices lower alongside a weaker U.S. dollar (greenback). Donald Trump also voiced optimism about reaching a conflict resolution deal. Analysts note the oil price pullback is helping ease inflationary pressures, reigniting bets on Fed rate cuts. Traders now peg a 60% chance of a rate cut by year-end. Institutional views: A weaker greenback plus rate-cut expectations directly support gold. Short-term prices could break above $5,000, they say. Separately, policy uncertainty has led some Indian banks to suspend gold import orders, leaving several tons of the metal stuck at customs. This may disrupt the short-term supply-demand balance. Overall, as markets shift from an "inflation shock" to a "rate-cut trade," gold is again emerging as a core asset for macro fund allocations.