Commodities
Gold Surges as Iran-US Tensions Ease, Oil Prices Plummet
Gold prices rose over 1% on Monday as tensions between the US and Iran eased following a pause in hostilities. The Iranian government announced it would halt its attacks if the US did the same, prompting investors to bet on a diplomatic solution.
Oil prices plummeted by 5% as investors hoped for a reduction in conflict, which had been driving up crude oil costs. Elevated oil prices raise concerns about inflation and potential interest rate hikes.
Gold traditionally acts as a hedge against inflation, but its appeal diminishes when interest rates are high. However, the dollar and US Treasury yields fell further supporting gold prices.