Gold Jumps 2% on US‑Iran Peace Deal
Spot gold surged 2.3% to $4,317.32 an ounce by 21:48 ET (01:48 GMT) in Asian trading, while U.S. gold futures for August advanced 2.4% to $4,338.75. The rally extended a rebound from the previous week’s multi‑month lows near $4,000/oz and was triggered by the announcement that U.S. and Iranian officials had reached an interim peace framework on Sunday. The agreement calls for a halt to hostilities, an end to the U.S. blockade of Iran, and the reopening of the Strait of Hormuz, a key conduit for global oil shipments. Pakistani Prime Minister Shehbaz Sharif said the deal would be formally signed in Switzerland on Friday.
The peace news sent Brent crude down more than 4%, pricing it around $84 a barrel as traders priced in the return of Gulf oil flows and a reduced risk of supply disruptions. The decline in oil prices eased inflation concerns that had been heightened by the conflict‑driven oil price surge.
The U.S. dollar index slipped 0.2% against a basket of major currencies, reflecting reduced demand for the greenback as inflation fears abated. Correspondingly, the CME FedWatch tool showed the probability of a Federal Reserve rate increase by December falling to 49%, down from 69% a week earlier. Market participants now anticipate that the Fed’s policy meeting on June 16‑17 will likely leave rates unchanged while providing updated economic projections.
Elsewhere, the Bank of Japan is expected to raise its policy rate to 1%, whereas the Bank of England is widely seen holding rates steady. Among other precious metals, silver rose 3.3% to $70.24 per ounce and platinum climbed 3.2% to $1,776.60 per ounce.