Gold Surges as US-Iran Tensions Ease on Reported Deal
Gold rallied at its fastest pace in two months after reports surfaced that Donald Trump canceled strikes against Iran and that a deal was reached between Washington and Tehran.
Gold prices accelerated their advance on Tuesday, posting the sharpest two-month rally as geopolitical risk premiums unwound. The move followed reports that U.S. President Donald Trump had called off planned military strikes against Iran and that a diplomatic agreement between the two nations had been reached.
Traders interpreted the development as a significant de-escalation in Middle East tensions, reducing safe-haven demand for the dollar and boosting gold. The precious metal had already been edging higher in recent days, but the news provided a clear catalyst for a breakout.
With the prospect of a broader conflict fading, market participants are now refocusing on monetary policy expectations and inflation data as the next drivers for gold.
Source: FXStreet Forex News