Spot gold jumps to $4,300 an ounce after U.S.-Iran preliminary agreement eases inflation and rate concerns, weakening the dollar.
Gold prices climbed 6% in a week, rising from $4,060 to over $4,300 an ounce. The rally followed a preliminary U.S.-Iran agreement to end Gulf hostilities, reducing fears of inflation and higher interest rates while weakening the dollar. Dollar-denominated metals became cheaper for foreign buyers, boosting demand.
Prior to the announcement, gold had faced pressure from expectations of prolonged high rates. The shift in geopolitical sentiment provided a sharp reversal, though analysts noted the metal remains sensitive to Fed policy signals and currency fluctuations.
Mining stocks Agnico Eagle Mines (AEM) and Alamos Gold (AGI) are positioned to benefit from the rally due to low political risk and strong cost controls in stable jurisdictions like Canada and Finland.