Gold Prices Surge as U.S.-Iran Peace Deal Hopes Boost Market Sentiment

Gold prices climbed sharply during early Asian trading on Monday as renewed optimism surrounding a possible U.S.-Iran peace agreement lifted investor confidence across global markets. The rally in bullion came alongside a notable decline in the U.S. dollar and Treasury yields, both of which increased demand for safe-haven precious metals.

Spot gold rose 1.5% to $4,577.12 per ounce, while gold futures gained 1.2% to reach $4,612.24 per ounce. Other precious metals also posted strong gains, with spot silver jumping 3.8% to $78.3865 per ounce and platinum advancing 2% to $1,965.45 per ounce.

Market sentiment improved after U.S. President Donald Trump stated over the weekend that a framework for a peace agreement with Iran had been “largely negotiated.” Reports suggested that the proposed deal could extend the ongoing ceasefire between the United States and Iran while reopening shipping routes through the Strait of Hormuz. Such a move would help stabilize global oil supplies and ease concerns about disruptions in energy markets.

Despite the optimism, uncertainty remains. Trump later clarified that the United States was in no rush to finalize the agreement and confirmed that a U.S. naval blockade on Iran would remain active. Additional reports indicated ongoing disagreements over Iran’s nuclear program, particularly Tehran’s refusal to surrender its stockpile of enriched uranium.

Even with these unresolved issues, hopes for reduced geopolitical tensions helped calm fears of rising energy-driven inflation. In recent months, inflation concerns linked to the Iran conflict pressured gold markets as investors worried that central banks, including the Federal Reserve, might respond with further interest rate hikes.

The weakening dollar and lower bond yields further supported gold prices, making precious metals more attractive to investors seeking stability amid ongoing global uncertainty.