Spot gold rose 3% to $4,694.40/oz and futures to $4,705.50/oz on Wednesday.
The rally stemmed from reports the US and Iran neared a one‑page peace memo, easing oil and dollar pressures.
Brent crude slipped below $100 a barrel while the US dollar weakened, further supporting gold's safe‑haven appeal.
Analysts note investors cut long dollar positions, but a 20% chance of a Fed rate hike by year‑end could cap gold upside.