Doha: Gold rose by more than 2% on Monday following the conclusion of an agreement on a memorandum of understanding between the United States and Iran, which led to a decline in oil prices and eased concerns about inflation and rising interest rates. Spot gold climbed 2.5% to $4,322.87 per ounce, reaching its highest level since June 9. US gold futures for August delivery also advanced 2.5% to $4,344.80 per ounce.
According to Qatar News Agency, the agreement between the US and Iran has significantly impacted the precious metals market. Among other precious metals, spot silver gained 3.6% to $70.39 per ounce. Platinum rose 3.3% to $1,773.70 per ounce, and palladium increased 3.3% to $1,324.75 per ounce.
The market's response indicates a positive sentiment towards the easing geopolitical tensions, which has historically affected commodity prices, particularly gold as a safe-haven asset. The decline in oil prices due to the agreement is expected to have a cascading effect on inflationary pressures, providing a more stable economic outlook.