Gold prices in global markets climbed on Tuesday, reaching nearly $4,770 per ounce. The increase was driven by falling oil prices and renewed optimism surrounding ongoing negotiations between Iran and the United States, which encouraged investors to turn to gold as a safe-haven asset.
After Asian markets opened, gold rose by 0.6% to $4,768 per ounce. At the same time, futures contracts for delivery in June also moved higher, trading at around $4,790 per ounce. This steady upward movement reflects growing confidence among investors that gold prices may continue to rise in the near term.
One of the key factors behind this increase was recent comments by U.S. Vice President J.D. Vance, who urged Iran to accept U.S. conditions and continue diplomatic talks. His remarks have strengthened market expectations that a potential agreement between the two countries remains possible, which has influenced trading sentiment.
Meanwhile, oil prices dropped to below $100 per barrel, adding pressure on global markets. This decline has also weighed on the U.S. dollar, which fell to its lowest level in a month according to the dollar index.
A weaker dollar typically makes gold more attractive to investors, as it becomes cheaper for buyers using other currencies. This tends to boost demand and push prices higher. As a result, the combination of a declining dollar, lower oil prices, and ongoing geopolitical developments has supported the recent rise in gold prices.
Analysts say that if optimism about a political agreement continues and the U.S. dollar remains weak, gold prices in global markets are likely to stay high or increase further in the coming weeks.
