Gold Climbs to Highest Since June 9 as Oil Falls Amid U.S.-Iran Peace Talks

Gold prices extended their advance for a third straight session on Monday, reaching the highest levels since June 9. The precious metal attracted investor interest even as a sharp decline in oil prices followed the announcement of a preliminary U.S.–Iran agreement.

During morning trading, spot gold rose to an intraday high of $4,335 per ounce, while the August futures contract climbed to $4,356 per ounce. The gains were driven by a flight‑to‑quality sentiment that has persisted in commodity markets despite the easing of geopolitical tensions.

At the same time, expectations that the agreement could restore energy flows through the Strait of Hormuz weighed heavily on oil markets. Brent crude fell around 5 % to a low of $83 per barrel, reflecting concerns that the reopening of the strait would increase supply and reduce price pressure.

U.S. President Donald Trump welcomed the ceasefire agreement between Washington and Tehran, describing it as a “major agreement that will bring peace and security to the entire region.” In a post on Truth Social, Trump added: “Many presidents have tried to achieve peace with Iran, but all have failed before me. For the first time, the leaders of the region have found a president capable of helping them achieve real peace.” He also stated that, with the reopening of the Strait of Hormuz, “scheduled for Friday, in conjunction with the signing of the agreement and to allow for mine clearance operations, oil will flow freely again, to the benefit of both the region and the rest of the world!”

Iran later confirmed the agreement through Deputy Foreign Minister Kazem Gharibabadi. He said negotiations toward a final settlement would continue over a 60‑day period and would focus primarily on sanctions relief. Gharibabadi added that Iran would only proceed to the next stage of discussions once its frozen assets were released, the U.S. blockade was lifted and the war had formally ended.

The agreement arrives as investors prepare for a busy week of central bank decisions, including the first Federal Reserve meeting chaired by Kevin Warsh, scheduled to take place between Tuesday and Wednesday. Before the agreement was announced, markets had increasingly expected U.S. interest rates to rise again by year‑end. However, sentiment shifted after the diplomatic breakthrough.

According to the CME FedWatch Tool, the probability of a December rate increase has fallen to 48 %, down from 69 % last week.

In summary, gold has benefited from a combination of risk‑off sentiment and a temporary easing of geopolitical risk, while oil prices have slipped in response to expectations of increased supply through the Strait of Hormuz. The U.S.–Iran preliminary agreement, endorsed by President Trump and confirmed by Iranian officials, marks a significant, though still provisional, step toward ending hostilities in the region. Market participants now await the formal signing of the agreement and the first Fed meeting to gauge the broader economic impact of these developments.