Gold Soars as Iran-US Tensions Ease, Oil Prices Plummet

Gold prices rose on Monday as tensions between the US and Iran eased, causing oil prices to plummet. Spot gold gained 1% to $4,092.87 per ounce by 1200 GMT, while US gold futures for August delivery rose 0.7% to $4,098.00.

Independent analyst Ross Norman attributed the increase in precious metals to a pause in Middle East hostilities. 'Precious metals have started the week on the front foot, helped by a pause in Middle East hostilities,' he said.

The US dollar index dropped 0.2%, making greenback-priced bullion more affordable for buyers overseas. Oil prices tumbled over 5% as Iran agreed to halt its attacks on US targets, raising hopes of a diplomatic solution to de-escalate the conflict surrounding the Strait of Hormuz.