Gold Prices Surge Driven by Collapsing Oil Prices and Subsiding Geopolitical Tensions

Precious metals markets witnessed a significant surge, with gold prices rising by over 2% to reach new record highs, surpassing the $4,322 per ounce mark. This rally came as a direct result of the announcement of a peace agreement framework between Washington and Tehran, accompanied by decisions to reopen the Strait of Hormuz. These positive geopolitical developments led to a sharp drop in global oil prices by more than 4% and a decline in the dollar index, bolstering gold's appeal as a safe haven. Financial market experts note that the receding security risks in energy corridors have helped mitigate inflationary expectations, providing exceptional support for the yellow metal, although the sustainability of this rise depends on the resilience of the announced political agreements.