Gold rose by over 2% to above USD4800 after a two-week ceasefire between the US and Iran reduced near-term escalation risks. Traders are watching whether the truce holds and what happens to shipping through the Strait of Hormuz.<\/p>\n
The next move in gold may depend on whether vessel throughput returns to a credible level during the two-week window. Shipping conditions may influence expectations for a longer-term ceasefire.<\/p>\n
Gold demand indicators also remain in focus. The PBoC extended its buying streak to a 17th consecutive month in March, adding 160,000 troy ounces to its reserves.<\/p>\n
The article was created with the help of an Artificial Intelligence tool and reviewed by an editor.<\/p>\n
The temporary two-week ceasefire has pushed gold above $4800, causing a significant drop in implied volatility as the immediate risk of conflict subsides. This suggests that strategies involving selling options to collect premium are now more attractive. We should consider that the market is reacting to the potential for a more stable, long-term peace rather than just the short-term relief.<\/p>\n
Our primary focus in the coming days must be on shipping traffic through the Strait of Hormuz. We need to see vessel throughput recover towards its pre-conflict average of approximately 90 ships per day. A sustained recovery to over 80% of that level by the end of the first week would be a strong bullish signal that the truce is holding.<\/p>\n
This scenario of normalizing trade routes will likely crush volatility further, similar to the pattern we observed in 2025 after tensions in the South China Sea de-escalated. Therefore, selling weekly or bi-weekly puts or put spreads below the $4750 level could be an effective way to capitalize on both decaying volatility and time. This strategy benefits if gold moves up, sideways, or even slightly down.<\/p>\n
Underpinning this entire view is the strong structural demand from central banks, which creates a solid price floor. The People’s Bank of China has now extended its buying streak to 17 months, and recent data from the World Gold Council shows global central bank net purchases for the first quarter of 2026 are already up 15% year-over-year. This consistent buying provides confidence that any significant price dips will likely be met with strong support.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold jumps 2% above $4,800 as US-Iran truce eases tensions; traders eye Hormuz shipping, PBoC buying.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-44427","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=44427"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44427\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=44427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=44427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=44427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}