ALBAWABA - After the peace deal between the US and Iran was announced, oil, which had been steadily decreasing, started dropping in earnest in anticipation of the deal between the two warring nations being signed in Geneva, Switzerland, on Friday. This eased concerns regarding inflation and interest rate hikes, allowing gold to surge 2 percent since this morning.
After a lot of tumult and turbulence, it seems that the fear-driven markets are eager to go back to 'business-as-usual' as flare-ups in recent weeks haven't had as much effect on gold and energy prices as prospects of peace have.
Oil
Oil, which had been previously dropping despite the war and its various escalations, is now down 4 percent in less than 24 hours since the announcement of the deal between the US and Iran; tumbling down to below $84 a barrel - closing at a three-month low as Trump declared in a Truth Social post that Hormuz is to open a "toll free opening" and to "let the oil flow!" - and flow it has, though a return to normal would take months to year according to analysts as mines still have to be cleared and oil extraction processes restarted and stockpiles refilled.
Gold
Gold, which has fallen 20 percent since the start of the war, has, on the other hand, risen back up more than 2 percent- extending its gains for a third consecutive session since the deal's announcement put concerns about rising inflation rates and interest hikes to bed. Gold climbed to $4318.0 per ounce at 10:24 a.m. - recording its highest level since June 9, while the US dollar fell to a 10-day low.
Spot silver rose 3.75 percent to $70.30 per ounce, platinum gained 3.47 percent to $1,771.8 and palladium climbed 3.1 percent to $1,331.5.
