Oil Prices Plummet Amid Hopes for US-Iran Negotiations, Gold Soars
Oil prices plummeted by over 5% after US President Donald Trump announced that he would not launch an immediate military attack on Iran and would prioritize negotiations. The development has led to a surge in gold prices, with spot gold increasing by 0.4% to $4,055.76 per ounce on the Comex division of the New York Mercantile Exchange. US gold futures also rose by 0.9% to $4,054 per ounce.
Trump's announcement sparked a decline in oil prices as investors became more hopeful about negotiations between the US and Iran. The US dollar has weakened due to foreign exchange market intervention to support the Japanese yen, making it cheaper for other currency holders to buy gold, which contributed to the rise in demand for the precious metal.
According to Tim Waterer, chief market analyst at KCM Trade, while gold started the week positively, its price increase remains limited due to the situation in West Asia and uncertainty in the oil market. Analysts note that concerns about rising inflation have put pressure on gold prices since the start of US-Iran tensions.