Gold prices jumped in Dubai on Monday morning as oil prices slumped after the US and Iran reached a peace deal.
The 24K gold price rose Dh13.75 to Dh521.75 per gram at the market opening on Monday while the 22K gold price was trading at Dh483 per gram, up Dh12.25 per gram.
Among the other variants of the yellow metal, 21K, 18K and 14K opened higher at Dh463.0, Dh396.75 and Dh309.5 per gram, respectively.
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Spot gold was trading at $4,329 per ounce, up 1.24 per cent. Silver jumped 1.88 per cent to $70.49 an ounce.
US and Iranian officials said on Sunday they had agreed on a peace framework for a deal to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.
The agreement will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.
Oil prices plunged more than four and a half per cent on Monday after the peace agreement.
The precious metal prices have been under pressure since the start of the US-Israeli war against Iran in late February. The effective closure of the Strait of Hormuz has led to a sharp increase in global oil prices, stoking inflation concerns and raising expectations of interest rates staying higher for longer.
