Oil and gold prices: Will US-Iran peace deal reshape markets next week?
Oil prices are expected to decline next week, while gold and silver markets could witness fresh movements, as the US and Iran move closer to a possible agreement to end tensions in the Middle East.
US President Donald Trump recently said that a proposal involving the reopening of the Strait of Hormuz had been “largely negotiated,” raising hopes of a breakthrough between the two countries.
Markets Closely Watching Developments
Global markets are monitoring the US-Iran talks closely, as any agreement could strongly impact:
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Oil supply
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Gold demand
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Global investor sentiment
Rania Gule, Senior Market Analyst for MENA, said a political or economic understanding between the two sides could reduce geopolitical risks and influence prices of oil, gold, and silver.
She also warned that markets may open Monday with sudden price fluctuations as investors react quickly to the latest developments.
Current Market Prices
Oil Prices
Brent crude closed at $103.5 per barrel
WTI crude closed at $96.6 per barrel
Gold Prices
Gold ended the weekend at $4,509.64 per ounce
UAE gold rates:
24K: Dh543.25 per gram
22K: Dh503.25 per gram
Silver Price
Silver traded at $75.51 (Dh277.37) per ounce
Oil Could Drop Further
Analysts believe oil prices may face direct downward pressure if Iranian oil returns to global markets.
According to Gule:
Oil prices may initially fall by 4% to 8%
The decline could deepen if:
Oil sanctions on Iran are eased
The Strait of Hormuz fully reopens
Gold and Silver Outlook
Gold prices may see a short-term decline as demand for safe-haven assets weakens amid easing political tensions.
However, analysts believe the fall may remain limited due to:
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Expectations of US interest rate cuts
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Strong central bank gold purchases
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Concerns over rising global debt
Gule expects gold prices to decline
around 2% to 5% in the short term.
Silver is also expected to follow gold’s direction but with higher volatility because of its role as both an industrial and investment metal.
Silver May Decline
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Expected drop: 3% to 7% initially
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Future movement will depend on:
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Industrial demand
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Global economic conditions
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