Gold prices jumped sharply by more than $100 per ounce in a single day following reports of a preliminary agreement between Washington and Tehran. The development also triggered a 4% decline in crude oil prices and pushed the U.S. dollar to a 10-day low.

Sharp Rise in Gold Prices

On Monday, June 15, spot gold rose by more than 2.5%. After closing at $4,213 on Friday, the metal opened with a $50 gap and is currently trading around $4,330 per ounce, its highest level in the past week.

At the same time, August gold futures climbed to $4,344. This rebound comes after a nearly 20% decline in gold prices since late February, driven by the outbreak of the war involving the United States, Israel, and Iran.

Timeline for Agreement Signing

Pakistan’s Prime Minister Shehbaz Sharif announced on his official X account that negotiations have reached their final stage.

The formal signing of the agreement is scheduled for Friday in Switzerland.

Shift in U.S. Interest Rate Expectations

Following the diplomatic developments, market expectations for a U.S. Federal Reserve interest rate hike fell from 69% to 48%.

Investors are now closely watching the upcoming Federal Reserve policy decision on Wednesday, expected to be led by Kevin Warsh, the new chair of the Federal Reserve. Early projections suggest that interest rates will remain unchanged.