Why Yellow Metal Rates Are Surging After 14-Point US-Iran Peace Deal?

Gold Prices Today: Gold rates and silver rates in India are expected to continue their uptrend after the United States and Iran agreed upon a preliminary peace agreement to end the West Asia conflict, reopen the Strait of Hormuz and launch a new round of negotiations over Tehran’s nuclear programme.

MCX gold and silver price are likely to follow the bullish sentiment in global bullion market. Spot gold surged by over 2.5% to trade above $4,300 per ounce and spot silver zoomed by over 4% to trade above $70.5 per ounce, according to a gold price tracking site.

Meanwhile, oil prices declined to a 2-month low. Brent Crude fell 5% to $83 per barrel and US WTI Crude Oil nosedived 6% to trade nearly $80 per barrel.

Also Read: How Will The Indian Stock Market React To US-Iran Peace Deal?

Concerns related to inflationary pressures, the energy crisis and rate hike trajectories have eased as a result of the US-Iran peace deal.

Iranian Deputy Foreign Minister Kazem Gharibabadi told Tasnim news agency that negotiations for a final peace deal will be held during a 60-day period, hinged upon Washington fulfilling its commitments, including ending hostilities, lifting the blockade, and releasing frozen assets. The deal also includes a cease of hostilities in Lebanon, per Iranian media reports.

Meanwhile, the US Federal Reserve will hold its first policy meeting this week under new chair Kevin Warsh and is widely expected to keep interest rates unchanged. The Reserve Bank of Australia is largely expected to leave policy steady, while the Bank of Japan is likely to raise rates in support of its currency, according to policy experts.