Gold Prices Rise as Oil Falls Following U.S. Ceasefire Extension With Iran

Gold futures moved higher in early European trading after the United States extended its ceasefire with Iran, easing concerns about escalating conflict and rising inflation. Gold prices climbed more than 1%, reaching $4,785 per troy ounce and then again back to $4,745 , as declining oil prices reduced immediate fears of supply disruptions that could drive inflation higher.

Market sentiment shifted as investors reacted to reduced geopolitical tension, with lower oil prices helping to stabilize inflation expectations. The easing of tensions also placed downward pressure on the U.S. dollar, which further supported gains in gold prices during the session.

Oil Decline and Dollar Pressure Shape Precious Metals Outlook

Analysts noted that the ceasefire extension lowered the risk of sudden military escalation and limited the possibility of a sharp oil price spike. This environment has created mixed signals for investors, with gold and silver competing with the dollar for market direction.

Despite the current upward move, analysts expect gold prices to remain within a defined trading range until clearer progress is made toward a long-term peace agreement. Continued uncertainty surrounding negotiations and geopolitical developments is likely to keep precious metal markets sensitive to news related to the ceasefire and regional stability.

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