(RTTNews) - Gold prices hit a three-week high on Wednesday as the dollar weakened significantly against major currencies following U.S. President Donald Trump's ceasefire move.
Spot gold traded nearly 2 percent higher at $4,798.25 an ounce, after hitting a high of $4,856 earlier. U.S. gold futures for June delivery were up more than 3 percent at $4,825.92.
Brent crude prices slumped 14 percent toward $90 a barrel and the dollar hit a four-week low as a two-week Middle East ceasefire helped ease fears of supply disruptions in oil markets and tempered inflation concerns.
The ceasefire calls for Israel and Hezbollah to halt fighting in Lebanon. Trump said he was holding off on his threatened attacks on Iranian bridges and power plants and that a 10-point proposal received from Iran is a workable basis on which to negotiate.
The two-week ceasefire plan includes allowing both Iran and Oman to charge fees on ships transiting through the Strait of Hormuz.
Iran's Supreme National Security Council said negotiations with U.S. representatives will begin in Islamabad on Friday and could last up to 15 days under Pakistan's mediation.
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