Gold jumps over 2% on easing tensions hopes

Gold Bars

Gold and silver prices extended gains on Monday after a preliminary agreement was reached to end the conflict between the US and Iran, easing concerns over inflation and interest rates as oil prices retreated.

The US dollar index, which measures the greenback against a basket of six major currencies, fell 0.35% to 99.41.

*As of 08:19 a.m. Makkah time

The market shift followed announcements by US and Iranian officials that they had agreed on a framework to end the military conflict, lift the US blockade on Iranian ports and reopen the Strait of Hormuz.

Pakistani Prime Minister Shehbaz Sharif said on X that the agreement is expected to be formally signed in Switzerland next Friday.

The developments come as markets have lowered expectations for a US interest-rate hike in December to 48%, down from 69% last week. Investors are now awaiting the Federal Reserve’s policy decision on Wednesday, the first meeting chaired by Kevin Warsh, with rates widely expected to remain unchanged.