Gold prices rose above $4,800 an ounce, reaching around $4,815 during early Asian trading on Wednesday.
This surge came as investors turned to buying following Donald Trump's announcement of a two-week postponement of the attack on Iran.
Trump explained in a post that the decision came after a request from Pakistan, which is playing a mediating role between the United States and Iran, for an additional grace period and a temporary halt to the escalation, as part of an effort to end the oil supply shutdown crisis in the Gulf.
Meanwhile, oil prices have risen sharply as tensions have escalated, increasing concerns about supply. Higher energy costs are fueling inflation, which limits central banks' ability to cut interest rates.
Although gold is considered a safe haven during times of geopolitical tension, rising interest rates reduce its appeal as it does not generate a return.
Investors are awaiting the release of the minutes from the Federal Reserve's March meeting, scheduled for Wednesday, for clues about the future path of monetary policy.