Sri Lanka, April 8 -- Gold extended gains on Wednesday as markets reassessed near-term risks after U.S. President Donald Trump said he had agreed to suspend bombing and attacks on Iran for two weeks, easing fears of energy-driven inflation. Spot gold climbed 2.3% to $4,811.66 per ounce ⁠by ⁠2344 GMT, after rising 1.2% on Tuesday, while U.S. gold futures for June delivery gained 3.3% to $4,840.20.

Trump said Washington had agreed to a two-week pause in attacks and had received a 10-point proposal from Iran what he described as a workable basis for negotiations.

His comments followed earlier warnings that Tehran must reopen the Strait of Hormuz or risk U.S. retaliation.

"This is a knee-jerk relief rally and it remains to R...