Gold prices increased by over one percent Monday following an agreement between US and Iranian officials to de-escalate conflict. The deal prompted a decline in oil prices, as geopolitical tensions eased. This reduction in oil prices subsequently alleviated concerns regarding potential inflation. Lower inflation expectations, in turn, lessened fears of further interest rate hikes by the Federal Reserve. Investors often turn to gold as a safe-haven asset during times of geopolitical uncertainty; the resolution of this conflict diminished that need, contributing to the price increase. The market reacted positively to the news, signaling renewed confidence in global economic stability.