3% Global Gold Gains Amid Optimism Over a U.S.-Iran Agreement

Gold prices rose in local markets and the global exchange during Wednesday’s trading, supported by a decline in the U.S. dollar and oil prices, amid growing market optimism regarding the possibility of reaching an agreement between the United States and Iran. This follows statements by U.S. President Donald Trump indicating progress toward a comprehensive deal that could help calm tensions in the Gulf region, according to a report by the "Marsad Al Dahab" for Economic Studies.

The researcher in gold and jewelry affairs and director of the "Marsad Al Dahab" stated that gold prices in the local market rose by approximately 105 pounds compared to yesterday's close, with 21-karat gold recording about 6,990 pounds, while the global ounce climbed by about $147 to reach $4,703, according to World Gold Council data at the time of writing. 

He added that 24-karat gold recorded about 7,989 pounds, and 18-karat reached about 5,991 pounds, while the gold coin (Gineih) reached 55,920 pounds. 

Gold prices had risen by about 5 pounds during Tuesday’s trading, as 21-karat gold opened at 6,880 pounds and closed at 6,885 pounds, while the ounce rose by about $38, opening at $4,518 and closing at $4,556. 

Gold prices rose, and oil prices fell during Wednesday’s trading amid market optimism about reaching a U.S.-Iran agreement, after statements by President Donald Trump confirming progress toward a comprehensive deal that could ease tensions in the Gulf.

 According to "Axios," Washington and Tehran are moving toward an agreement to end the ongoing conflict, a step that could restore stability to global energy markets. The report noted that the potential deal might include lifting restrictions on passage through the Strait of Hormuz, along with an Iranian commitment to stop uranium enrichment, in exchange for the U.S. agreeing to lift sanctions and release billions of dollars in frozen Iranian funds. Washington is also awaiting an Iranian response regarding several key points within the next 48 hours.

 These developments sparked sharp fluctuations in financial markets, as the U.S. Dollar Index lost more than 0.6% of its value, dropping near the 97.90 level, while U.S. stock futures rose by between 0.65% and 1.1%. In contrast, gold benefited from the weak dollar and reduced geopolitical risks, rising by about 3% to reach $4,700 per ounce, after recording its lowest level in over a month near $4,500 earlier this week. Regarding oil, Brent crude futures for July delivery fell 1.56% to $108.06 per barrel, following a 4% loss in the previous session, while U.S. West Texas Intermediate (WTI) fell 1.8% to $100.48 per barrel. These movements came after Trump announced a temporary suspension of escorting commercial ships through the Strait of Hormuz in light of progress in negotiations with Iran, without disclosing details of the potential agreement. 

Nevertheless, he confirmed the continuation of the U.S. naval blockade on Iranian ports. The Strait of Hormuz, through which about 20% of global oil and gas supplies pass, has remained semi-closed since the outbreak of the U.S.-Israeli war on Iran last February, keeping markets in a state of constant anticipation. The decline in oil prices helped ease inflationary fears and reduce the geopolitical risk premium, supporting gold gains, especially as the fragile ceasefire between the U.S. and Iran continues despite recent clashes. 

The U.S. dollar also faced additional pressure after Trump’s statements, boosting the appeal of gold for holders of other currencies as a safe haven and a hedging tool in times of uncertainty. At the same time, investors are awaiting the release of U.S. jobs data, led by the Non-Farm Payrolls (NFP) report this coming Friday, to gauge the strength of the U.S. economy and the Federal Reserve's ability to maintain its current monetary policy or return to discussing interest rate cuts if the labor market slows down. 

Traders are also anticipating the ADP private employment report, along with speeches by members of the Federal Open Market Committee (FOMC), due to their direct impact on dollar and gold price movements in the coming period. In the energy market, American Petroleum Institute (API) data showed a decline in crude oil inventories for the third consecutive week, falling by about 8.1 million barrels during the week ending in early May, while gasoline inventories decreased by about 6.1 million barrels, and distillate stocks fell by 4.6 million barrels compared to the previous week.