Brussels: Gold rose more than 2% on Monday after US and Iran officials said they had reached an initial agreement to end their war: Spot gold price rose 2.5%, to $4,323.29 an ounce, its highest since June 9, and extended gains for a 3rd straight session. US Gold Futures for August Delivery rose 2.5% at $4,343.80. Spot silver increased 3.3%, to $70.19 an ounce.
According to Emirates News Agency, the agreement between the US and Iran has contributed to a positive outlook in the gold market, with investors reacting to the news by increasing their holdings in the precious metal. The settlement has been seen as a significant step towards stabilizing geopolitical tensions, influencing the upward trend in gold prices.
Market analysts noted that the rise in gold prices reflects a response to the reduced uncertainty in the region. The recent developments have encouraged investors to seek safe-haven assets, with gold being a preferred choice during times of geopolitical risk.
The increase in spot silver prices also aligns with the broader trend observed in precious metals following the announcement of the peace deal. The market's reaction indicates a shift in investor sentiment, with a move towards assets that offer stability amidst the changing geopolitical landscape.