Dubai’s gold market saw a significant rally on Monday morning as investors reacted to the unexpected peace agreement between the United States and Iran. With tensions de-escalating, the price of 24K gold climbed by Dh13.75 to hit Dh521.75 per gram. Other variants followed this upward trend, with 22K gold rising to Dh483 per gram, while 21K, 18K, and 14K gold also saw notable gains. Global markets mirrored this sentiment, with spot gold climbing 1.24 percent to trade at $4,329 per ounce and silver experiencing a 1.88 percent jump.

The surge in precious metals comes alongside a sharp downturn in global oil prices, which plummeted more than four percent following the announcement of the peace deal. This diplomatic breakthrough, which aims to conclude the ongoing conflict, lift the US blockade on Iran, and reopen the Strait of Hormuz, is set to be formalized in Switzerland this coming Friday. The move marks a dramatic shift in market conditions, as the previous closure of the Strait of Hormuz had fueled inflation fears and kept interest rates high for months.