Gold Futures have surged up to 2.5% following US President Donald Trump's announcement of a temporary ceasefire and the subsequent decision to call off strikes on Iran, which in turn, has also agreed to halt hostilities and momentarily grant safe passage through the Strait of Hormuz for the next two weeks.
Reacting to this key development, June Gold Futures are trading with gains of around 2.51% at $4,851 an ounce. This is a direct impact of the ceasefire agreement, which was expected to push gold and equities higher while putting downward pressure on the oil market.
Sure enough, Brent Crude has fallen almost 6%, whereas WTI Crude, which reads directly into the US economy and markets, is down 15%.
ALSO READ: Brent Crude Falls Over 5%, WTI Down 15% As Donald Trump Agrees To A Temporary Ceasefire With Iran
Meanwhile, Silver prices have also surged, with the May Silver Futures rising more than 6% to $76 per ounce.
Market experts have maintained that the conflict will benefit Gold, as it could potentially allow the Federal Reserve to consider cutting rates by the end of the year.
The current gold rally means the yellow metal has also beaten the initial resistance of $4,774 and is closing in on the second resistance of $4,896.7, as per analysts at Kotak Securities.
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