Gold and silver recorded their sharpest gains in about a month as optimism grew that the US and Iran are approaching a deal to end their war. JSE gold shares surged significantly as a result, benefiting from the rise in metal prices.
The price of gold climbed as much as 3.7% to exceed $4,700 an ounce before settling at $4,680.20. Silver surged even more, increasing by 6.8% and trading up 5.5% at $76.81 an ounce.
Key players in the JSE experienced notable gains. Harmony Gold and Sibanye-Stillwater each gained over 9%. Shares in Valterra, Impala Platinum, Gold Fields, and DRDGold rose by more than eight percent on the day.
Ewa Manthey noted, “Gold and silver are rallying as hopes of a US-Iran deal push oil and the dollar lower, easing the macro headwinds that have weighed on bullion in recent weeks.” This reflects the market’s positive response to the ongoing diplomatic discussions.
The US expects a response from Iran on key points within 48 hours. However, gold has lost about 11% since the war began, indicating volatility in the market.
A weaker dollar following peace reports made gold cheaper for international buyers. This shift likely contributed to the surge in JSE gold shares.
President Donald Trump commented on the situation, stating, “Great progress has been made.” This statement aligns with rising optimism among investors.
