Gold extended its gains for a second consecutive day, bolstered by reports indicating U.S. President Donald Trump's openness to conclude hostilities with Iran without insisting on the reopening of the Strait of Hormuz, alongside Federal Reserve remarks that tempered expectations for interest rate hikes.

Spot gold increased by 2.24% to $4,612.64 per ounce. Silver advanced 4.35% to $73.14 per ounce. Platinum and palladium also recorded gains.

The price increase followed a report stating that Trump informed advisors he is prepared to end the U.S. military campaign against Iran even if the Strait of Hormuz stays largely closed, fostering optimism for a resolution to the month-long conflict.

Concurrently, Federal Reserve Chair Jerome Powell noted that long-term U.S. inflation expectations seemed anchored, despite a war-induced surge in oil prices that heightened inflationary pressures and speculation about rate increases. He described the central bank's current policy stance as appropriate for a patient approach.

Buyers have recently stepped into the gold market to capitalize on price dips that occurred after the U.S. and Israel initiated strikes against Iran in late February.

Meanwhile, the White House warned of potential escalation in strikes against Iran, possibly targeting critical civilian infrastructure. Iran's parliament passed legislation authorizing fees on vessels transiting the Strait of Hormuz and is encouraging the Houthi militant group in Yemen to renew attacks on shipping in the Red Sea. Additionally, an Iranian attack targeted a Kuwaiti crude oil carrier near Dubai, as confirmed by Kuwait Petroleum Corp. on Tuesday.

These developments have intensified concerns about a protracted conflict that could drive energy prices higher, prompting central banks to raise interest rates to combat inflation—a scenario that typically weighs on non-yielding precious metals. Combined with a liquidity squeeze in broader financial markets, these factors have positioned gold for an approximate 13% monthly decline.