Gold prices increased by over 1% on Monday after officials from the United States and Iran announced a deal to end hostilities between the two nations. This announcement led to a decline in oil prices and eased inflation concerns, along with fears of rising interest rates.
In spot transactions, gold rose by 1.8%, reaching $4,297.42 per ounce, marking its highest level since June 9. Additionally, U.S. gold futures for August delivery climbed by 1.9%, hitting $4,318.10 per ounce.
This increase in gold prices was driven by a drop in oil prices of more than 4%, coupled with the dollar’s decline to its lowest level in 10 days. The weakening dollar enhanced gold’s appeal as a safe haven for investors.
Although gold traditionally serves as a hedge against inflation, rising interest rates often diminish its attractiveness. The CME Group’s FedWatch tool indicates that traders foresee a 68% probability that the Federal Reserve will raise interest rates by December.
Markets continue to monitor the agreement’s impact on the global economy, anticipating significant effects on commodity prices, including gold. Amid these developments, investors remain cautious and vigilant for any potential shifts in economic policies.
The post Gold Prices Rise to Weekly High After U.S.-Iran Peace Agreement appeared first on Yemen TV.
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