Gold prices rose in European markets on Thursday, resuming the gains that paused yesterday and approaching a four-week high once again, moving into positive territory thanks to the decline of the American currency in the foreign exchange market.

This comes amid anticipation of new developments regarding the talks between the United States and Iran, as intensive diplomatic efforts continue to push for a new round of peace negotiations following the stumbling of the previous round hosted by Pakistan.

Price Overview

- Gold Prices Today: Gold metal prices rose by 1.0% to ($4,838.42), from the opening level of ($4,791.26), and recorded a low of ($4,791.10).

- Upon price settlement on Wednesday, gold prices lost about 1.05% due to correction and profit-taking operations, after having earlier recorded a four-week high of $4,871.34 per ounce.

The U.S. Dollar

The dollar index fell on Thursday by more than 0.2%, deepening its losses for the ninth consecutive session and recording a six-week low of 97.83 points, reflecting the continued drop in the levels of the American currency against a basket of global currencies.

Optimism has increased in the markets regarding the probability of the United States and Iran reaching a peace agreement, prompting investors to reduce their holdings of the American currency as a safe haven and move toward higher-risk assets.

U.S. President Donald Trump stated that the U.S.-Israeli war on Iran is "about to end," while the White House expressed optimism about the possibility of reaching a deal, noting the likelihood of additional rounds of direct talks in Pakistan.

Khoon Goh, head of Asia research at ANZ Bank, said: Markets are now essentially ignoring the conflict and expecting some kind of settlement. Goh added: With markets pricing out the impact of the war, we may see more pressure on the dollar and a resumption of the downward trend that began roughly last year.

U.S. Interest Rates

- According to the FedWatch tool of the CME Group: the pricing of the probabilities of keeping U.S. interest rates unchanged at the April meeting is currently stable at 99%, and the pricing of the probabilities of raising interest rates by about 25 basis points is at 1%.

- In order to re-price those probabilities, investors are closely following the release of more economic data from the United States.

Gold Performance Expectations

Kelvin Wong, senior market analyst for Asia Pacific at OANDA, said: The main driver (for the rise in gold prices) is optimism regarding a ceasefire between the United States and Iran.

Wong added: If we start to see a breakout above $4,900, a further potential rise toward the next intermediate resistance zone, which lies at the psychological level of $5,000, cannot be ruled out.

SPDR Fund

Gold holdings at the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased on Wednesday by about 2.28 metric tons, marking the second consecutive daily increase and bringing the total to 1,051.76 metric tons, which is the highest level in a week.

The euro rose in European markets on Thursday against a basket of global currencies, extending its gains for the ninth consecutive day against the U.S. dollar and recording its highest level in seven weeks, amid a positive atmosphere dominating global markets due to optimism regarding the possibility of the United States and Iran reaching a peace agreement.

The American currency continues its losses as the White House's optimism regarding a peace deal with Iran has bolstered sentiment and encouraged investors to abandon their safe-haven positions while awaiting new developments concerning the intensive talks between Washington and Tehran.

Following the recent decline in global oil prices, indications are increasing that inflationary pressures on monetary policy makers at the European Central Bank (ECB) are receding, and the probability of raising European interest rates this year has declined.

Price Overview

- Euro Exchange Rate Today: The euro rose against the dollar by 0.2% to ($1.1824), the highest since February 27, from today's opening price of ($1.1799), and recorded a low of ($1.1795).

- The euro ended Wednesday's trading up by less than 0.1% against the dollar, marking its eighth consecutive daily gain—the longest streak of daily gains this year—amid positive developments regarding the U.S.-Iranian talks.

The U.S. Dollar

The dollar index fell on Thursday by more than 0.2%, deepening its losses for the ninth consecutive session and recording a six-week low of 97.83 points, reflecting the continued drop in the levels of the American currency against a basket of major and minor currencies.

Optimism has increased in the markets regarding the probability of the United States and Iran reaching a peace agreement, prompting investors to reduce their holdings of the American currency as a safe haven and move toward higher-risk assets.

U.S. President Donald Trump stated that the U.S.-Israeli war on Iran is "about to end," while the White House expressed optimism about the possibility of reaching a deal, noting the likelihood of additional rounds of direct talks in Pakistan.

Khoon Goh, head of Asia research at ANZ Bank, said: Markets are now essentially ignoring the conflict and expecting some kind of settlement. Goh added: With markets pricing out the impact of the war, we may see more pressure on the dollar and a resumption of the downward trend that began roughly last year.

European Interest Rates

- With the decline in global oil prices, the money market pricing of the probability of the European Central Bank raising European interest rates by about 25 basis points in April fell from 35% to 15%.

- In order to re-price the above probabilities, investors await the release of more economic data in the eurozone regarding the levels of inflation, unemployment, and wages.

The Australian dollar rose broadly in the Asian market on Thursday against a basket of global currencies, extending its gains for the fourth consecutive day against its American counterpart and hitting a four-year high, benefiting from the decline in the levels of the American currency in the foreign exchange market.

The currency was supported by strong expectations that the Reserve Bank of Australia (RBA) will raise interest rates during its upcoming May meeting, especially after the release of significant data in Australia showing labor market resilience despite the pressures of the "Iranian war" and rising energy costs.

Price Overview

- Australian Dollar Exchange Rate Today: The Australian dollar rose against its American counterpart by 0.45% to (0.7198), the highest since June 2022, from today's opening price of (0.7165), and recorded a low of (0.7163).

- The Australian dollar ended Wednesday's trading up by 0.6% against the U.S. dollar, marking its third consecutive daily gain amid positive risk sentiment and U.S. stocks climbing to new record highs.

The U.S. Dollar

The dollar index fell on Thursday by more than 0.2%, deepening its losses for the ninth consecutive session and recording a six-week low of 97.83 points, reflecting the continued drop in the levels of the American currency against a basket of major and minor currencies.

Optimism has increased in the markets regarding the probability of the United States and Iran reaching a peace agreement, prompting investors to reduce their holdings of the American currency as a safe haven and move toward higher-risk assets.

U.S. President Donald Trump stated that the U.S.-Israeli war on Iran is "about to end," while the White House expressed optimism about the possibility of reaching a deal, noting the likelihood of additional rounds of direct talks in Pakistan.

Khoon Goh, head of Asia research at ANZ Bank, said: Markets are now essentially ignoring the conflict and expecting some kind of settlement. Goh added: With markets pricing out the impact of the war, we may see more pressure on the dollar and a resumption of the downward trend that began roughly last year.

Australian Data

Significant economic data released today in Sydney showed:

- The unemployment rate remained stable at 4.3% in March, aligning perfectly with market expectations and the Reserve Bank of Australia (RBA).

- The Australian economy added 17,900 new jobs in March, very close to the forecast of 20,000 jobs.

- Full-time employment saw a qualitative jump, adding 52,500 jobs in March after losing 27,700 jobs in February.

- The consumer inflation expectations index for April recorded an increase to 5.9% compared to 5.2% in the previous month. This reading for inflation expectations is the highest since late 2022, increasing pressure on the RBA.

The Chinese Economy

The Chinese economy—the largest trading partner of the Australian economy—recorded strong growth at a rate of 5% in the first quarter of 2026, exceeding analyst expectations of 4.8%, after recording growth of 4.5% in the final quarter of last year.

Australian Interest Rates

- Following the above data, the pricing of the probability of the Reserve Bank of Australia raising interest rates by about 25 basis points in May rose from 55% to 70%.

- In order to re-price those probabilities, investors await the release of more data on the levels of inflation, unemployment, and wages in Australia.

- The Reserve Bank of Australia has raised interest rates twice this year to 4.1%, as a result of the impact of the U.S.-Israeli war on Iran on global oil trade and rising fuel prices across the country.

The S&P 500 closed at a new record high on Wednesday, marking its first record close since the start of the conflict between the United States and Iran, as investors returned to high-risk assets bolstered by hopes of de-escalation and strong earnings expectations.

The index recorded a closing level of 7,022.95 points, rising by 0.8% and surpassing its previous record close in January, according to LSEG data. It also hit an intra-day record high of 7,026.24 points.

The report noted that U.S. President Donald Trump stated that talks with Iran to end the war may resume soon, following the failure of the first round of negotiations held in Islamabad. Markets had retreated sharply last month when hostilities broke out, causing a historic shock to oil markets and reviving concerns over inflation and U.S. interest rate expectations.

The S&P 500 had declined by as much as 9% after the conflict erupted on February 28, stopping just short of the traditional 10% correction level. However, both the Nasdaq Composite and the Dow Jones Industrial Average did reach correction territory (10%) during the sell-off.

Markets received support from strong corporate earnings outlooks. Executives at major banks reported that the American consumer remains resilient despite the oil price shock, and that deal activity and initial public offerings remain robust.

According to LSEG data, S&P 500 companies are expected to generate total profits of $605.1 billion during the first quarter of the year, compared to estimates of $598.7 billion at the start of the quarter.

Several financial institutions viewed the previous decline as an opportunity to buy stocks at lower prices, despite the continued risks of geopolitical escalation, which could test market confidence if renewed.

Analysts warned that even if geopolitical risks recede, pre-war concerns could return to the forefront, particularly those related to the impact of artificial intelligence.

Private credit firms also face increasing pressure due to the risk of investors withdrawing funds amid general market anxiety.

Jeff Schulze, head of economic and market strategy at ClearBridge Investments, said: “Markets rarely wait for full information. Despite continued uncertainty regarding energy disruptions, they see risks receding and the most likely trend is upward.”

He added that the current earnings season has “started well so far.”

Bank of America shares rose following the announcement of first-quarter profit growth, and Morgan Stanley shares climbed after strong results bolstered the financial sector of the S&P 500.

According to preliminary data, the S&P 500 rose by 54.83 points, or 0.79%, to close at 7,022.21 points, while the Nasdaq Composite jumped 375.34 points, or 1.59%, to reach 24,014.43 points. In contrast, the Dow Jones Industrial Average fell by 75.44 points, or 0.16%, to close at 48,460.55 points.

The Volatility Index (VIX) dropped to its lowest level since February 26, reflecting a decline in demand for risk hedging.

The technology sector in the S&P 500 performed strongly, supported by a rise in software stocks, while the industrials and basic materials sectors lagged behind.