Precious metals climbed sharply in early trading Wednesday as the U.S. dollar weakened and Treasury yields fell. The dollar's decline made USD-denominated gold and silver cheaper for holders of other currencies, while lower yields enhanced the appeal of non-interest-bearing assets. Spot gold jumped 2.3% to $4,810.27 an ounce, while silver surged 4.2% to $76.02 an ounce.

The market moves followed President Trump's announcement that he agreed to suspend attacks on Iran for two weeks, contingent on the immediate reopening of the Strait of Hormuz. This development eased geopolitical tensions that had been weighing on markets. A potential reopening of the strategic waterway could lead to lower oil prices and reduce inflation concerns that have been pressuring investors.

Lower oil prices would benefit consumers and businesses by reducing energy costs, potentially easing inflationary pressures that have kept the Federal Reserve cautious on interest rates. The combination of dollar weakness and falling yields created ideal conditions for precious metals to rally, as investors sought safe-haven assets amid ongoing economic uncertainty.