Spot gold climbed 2.3% to $4,317.32 an ounce by 21:48 ET (01:48 GMT), while U.S. Gold Futures for August delivery advanced 2.4% to $4,338.75. The move extended a rebound from last week\u2019s multi-month lows near $4,000 per ounce.<\/p>\n
The precious metal had been under pressure for much of the conflict period, despite its traditional role as a safe-haven asset. Higher oil prices driven by the war had fueled inflation concerns and strengthened expectations that interest rates would stay elevated for longer. Those expectations had supported the U.S. dollar and Treasury yields, reducing the appeal of non-yielding bullion.<\/p>\n
U.S. and Iranian officials said on Sunday they had reached a peace framework to halt hostilities, end the U.S. blockade of Iran, and reopen the Strait of Hormuz, a key route for global oil shipments. Pakistani Prime Minister Shehbaz Sharif said the agreement would be formally signed in Switzerland on Friday.<\/p>\n
The announcement prompted a sharp decline in energy markets. Brent crude fell more than 4% to around $84 a barrel as traders priced in the potential return of Gulf oil flows and a reduced risk of supply disruptions. The U.S. dollar also weakened, with the U.S. Dollar Index last down 0.2%.<\/p>\n
Market expectations for additional U.S. monetary tightening eased following the peace news. According to the CME FedWatch tool, traders now assign a 49% probability of a Federal Reserve rate increase by December, down from 69% a week earlier. Investors are focused on the Fed\u2019s June 16\u201317 policy meeting, where policymakers are widely expected to leave rates unchanged and deliver updated economic projections.<\/p>\n
Elsewhere in global monetary policy, the Bank of Japan is expected to raise interest rates to 1%, while the Bank of England is widely seen holding rates steady this week.<\/p>\n
Other precious metals also advanced. Silver prices rose 3.3% to $70.24 per ounce, while platinum gained 3.2% to $1,776.60 per ounce, moving in tandem with gold\u2019s rebound amid shifting expectations for inflation and interest rates.<\/p>\n
Why did gold prices jump on Monday?<\/strong> How did the peace framework affect oil markets?<\/strong> What changed in Federal Reserve rate expectations?<\/strong> How did other precious metals perform?<\/strong>
Gold prices rose after the U.S. and Iran agreed to an interim peace framework, which lowered oil prices and eased market expectations for higher interest rates, supporting demand for bullion.<\/p>\n
The announcement led to a more than 4% drop in Brent crude to around $84 a barrel as traders anticipated the return of Gulf oil flows and reduced risks of supply disruptions.<\/p>\n
The probability of a Fed rate increase by December fell to 49% from 69% a week earlier, according to the CME FedWatch tool, following the peace announcement.<\/p>\n
Silver rose 3.3% to $70.24 per ounce, and platinum increased 3.2% to $1,776.60 per ounce, reflecting broader strength in the precious metals complex.<\/p>\n