Gold prices increased following the announcement of a memorandum of understanding between the U.S. and Iran, alleviating concerns about potential interest rate hikes. This agreement diminished fears of escalating tensions in the Middle East, impacting global markets. Simultaneously, oil prices experienced a significant drop, falling nearly 5% to their lowest level since March 4th. The price decline in oil is directly linked to the reduced geopolitical risk associated with the U.S.-Iran agreement. Investors reacted positively to the prospect of continued oil supply, contributing to the downward pressure on prices. The agreement suggests a potential easing of sanctions and a possible increase in Iranian oil exports, further influencing market dynamics. This dual market reaction highlights the interconnectedness of geopolitical events and financial markets.