Gold prices gained more than 1 percent following the announcement of a peace deal between the United States and Iran. The agreement aims to end the conflict, halt the US blockade, and reopen the Strait of Hormuz. Markets reacted positively as oil prices fell sharply.
US and Iranian officials announced the deal, which promises to ease tensions in the Gulf region. This development reduced concerns over inflation and potential interest rate hikes by the Federal Reserve.
Oil prices plummeted in response, with Brent crude falling significantly. Asian shares and global markets surged on the news of the tentative agreement.
The peace deal offers relief to central banks ahead of key policy meetings this week. It also lowers the likelihood of a December US rate increase.
