Oil Prices Plummet as Gold Holds Steady Amid US-Iran Truce
The recent US-Iran truce has sent shockwaves through commodity markets, causing oil prices to plummet while gold and other precious metals remain relatively stable.
Brent crude dropped 8.35% to $90.17 per barrel, a significant reversal from the rally that propelled WTI more than 40% above its July lows.
However, gold has proven less affected by the geopolitical de-escalation, instead responding to interest rate expectations and currency dynamics.
The metal gained 0.38% to $4,071.00 per ounce on Monday, with a softer dollar index providing significant tailwind.
The central bank demand for gold is also increasing, with China's central bank adding approximately 9.95 tonnes of gold to its reserves in May, further solidifying the metal's position as a safe-haven asset.