US-Iran Tensions Ease: Oil Prices Plummet, Gold Sees Gains

Oil prices plummeted in the global market as tensions between the US and Iran eased slightly. The price of Brent crude oil dropped more than 5% to $83.33 per barrel following US President Donald Trump's announcement that he would refrain from fresh attacks on Iran for now, with talks scheduled for Monday but no deadline set for an agreement.

This development reduced concerns about inflation and interest rates rising further, leading to increased demand for gold as a safe-haven investment. As a result, spot gold prices rose 0.7% to $4,068.54 per ounce, while US gold futures rose 0.9% to $4,066.60.

The Japanese authorities' intervention in the foreign exchange market to support the yen also put pressure on the US dollar, making dollar-priced gold comparatively cheaper for foreign buyers and supporting the price increase.