The precious metal has been under pressure since the start of the US–Israeli war against Iran in late February, which initially weighed on investor sentiment and kept prices volatile amid heightened geopolitical uncertainty.
However, gold prices rebounded on Monday morning after news of a US–Iran peace deal, as easing tensions and expectations of improved global supply flows helped revive demand for the safe-haven asset and unwind part of the earlier risk-driven positioning.
Gold prices jumped in Dubai on Monday morning, tracking global gains in bullion after oil prices fell sharply following news of a US–Iran peace deal.
The 24K gold rate rose by Dh13.75 to Dh521.75 per gram at market opening on Monday, while 22K gold climbed Dh12.25 to Dh483 per gram, according to Dubai Jewellery Group data.
The decline in oil prices, driven by easing geopolitical tensions, helped support precious metals as markets reassessed inflation and safe-haven demand amid the latest developments.
Among other variants of the yellow metal, 21K, 18K and 14K opened higher at Dh463.00, Dh396.75 and Dh309.50 per gram, respectively.
Spot gold was trading at $4,329 per ounce, up 1.24%, while silver climbed 1.88% to $70.49 an ounce.
US and Iranian officials said on Sunday they had agreed on a peace framework aimed at ending the conflict, lifting the US blockade of Iran and reopening the Strait of Hormuz.
The agreement is expected to be formally signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.
Oil prices fell more than 4.5% on Monday following the announcement of the peace deal.
Precious metals had been under pressure since the start of the US–Israeli war against Iran in late February. The effective closure of the Strait of Hormuz had driven global oil prices higher, fuelling inflation concerns and raising expectations that interest rates would remain elevated for longer.
