Significant Global Surge in Gold Prices Amid Declining Oil and Dollar Following International Understandings

Global gold prices surged by over 2% in both spot and futures trading, driven by declines in oil and the US dollar, following the announcement of a framework to end tensions between Washington and Tehran and reopen vital waterways. This geopolitical breakthrough led to a drop in oil prices by more than 4% and pushed the dollar to its recent lows. Financial analysts explained that the receding security risks and expectations of normalized maritime traffic have helped ease inflation concerns, providing strong support for the precious metal as a safe haven. However, the sustainability of these gains remains contingent on the durability of the political agreements and their impact on the trajectory of global interest rates.