Gold Price Sees Significant Gains Amid Easing US-Iran Tensions

The gold price has seen a significant climb, nearing $4,100 an ounce, as US-Iran tensions ease. This comes after a decline in oil prices due to ongoing talks of ending the conflict with diplomatic support from Qatar.

Gold had fallen by over 20% since the US-Iran war began, driven by soaring energy prices and inflationary pressures that increased the likelihood of interest rate hikes. However, as tensions cool, investors are seeing a shift in favor of gold.

Central banks have been accumulating gold in recent months, led by China, which still sees gold's long-term uptrend intact. Analysts at Citi believe US$4,500 an ounce is possible later this year, citing the end of the conflict and normalization of Hormuz flows.