Gold prices surged while oil prices fell sharply late Sunday and early Monday after an agreement was announced to end the conflict between the US and Iran by mediator Pakistan.
Brent futures, which were trading above $87 a barrel, fell to below the $84 level, down roughly 4% day-by-day as of 2222GMT following the news of the planned agreement between Washington and Tehran, which is set to be signed on Friday after over three months of the conflict.
Gold rose more than 1% Monday after US and Iranian officials said they had reached a deal to end their conflict, pushing oil prices lower and easing concerns about inflation and higher interest rates.
Spot gold was up 1.8% at $4,297.42 per ounce as of 0010GMT, its highest level since June 9, while US gold futures for August delivery climbed 1.9% to $4,318.10.
Pakistani Prime Minister Shehbaz Sharif announced early Monday that the US and Iran had reached an agreement following intensive negotiations, with both sides declaring an immediate and permanent end to military operations across all fronts, including in Lebanon.
"Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED," Sharif said in a post on the US social media platform X.
He added that “both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.”
According to Sharif, the official signing ceremony is scheduled to take place on June 19 in Switzerland.
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