Gold prices extended their advance after reports that the United States is seeking a ceasefire to advance diplomatic negotiations, halting a nine-day decline.

The price of gold rose by as much as 2.2%, climbing back above $4,570 per ounce, building on a 1.6% gain from the previous trading session. US President Donald Trump stated that Iran had presented a "gift" demonstrating a sincerity to negotiate, noting it was related to energy transport through the Strait of Hormuz. According to Axios, Washington and regional mediators are discussing the possibility of high-level peace talks as early as Thursday, though they are still awaiting a response from Tehran.

Oil prices fell and stocks rose, while a key index measuring the US dollar declined. Since the war began over three weeks ago, gold has largely moved in tandem with equities and inversely to oil prices. The Middle East conflict, which has led to elevated energy prices, has heightened inflation risks, prompting investors to bet on interest rate hikes. This has negatively impacted non-yielding precious metals.

In recent weeks, declines in global stocks and bonds have also forced investors to sell gold positions to raise cash, further accelerating the price drop.

Market tensions remain high, with Iran maintaining tight control over the Strait of Hormuz and Israel continuing airstrikes against Iranian targets. The Trump administration has ordered the deployment of approximately 2,000 soldiers from the 82nd Airborne Division to the Middle East. This deployment, combined with around 5,000 additional troops expected to arrive in the region in the coming days, represents a significant escalation.

As of 8:44 a.m. Singapore time, spot gold was up 2.1% at $4,569.78 per ounce. Silver rose 4.03% to $74.08 per ounce, following a 3% gain at the previous session's close. Prices for platinum and palladium also advanced. The Bloomberg Dollar Spot Index fell 0.3%.