XAU/USD jumps over 3% as a US-Iran agreement eases geopolitical risks and weighs on the USD and crude prices.
Gold prices climbed more than 3% to $4,367 as the US and Iran finalized a framework deal to end hostilities in the Middle East. The agreement, set to be signed in Switzerland on Friday, includes the removal of a US naval blockade and the reopening of the Strait of Hormuz, reducing fears of energy supply disruptions.
The precious metal had fallen nearly 20% during the conflict as soaring oil prices stoked inflation concerns and reinforced expectations of prolonged high interest rates. WTI crude dropped to around $79 per barrel, its lowest level in nearly three months, while the US Dollar weakened on improved market sentiment.
Investors viewed gold as a hedge against geopolitical uncertainty, though its recent behavior mirrored interest-rate-sensitive assets amid shifting Fed policy expectations.