Gold Prices Plunge Over 3% as US-Iran Diplomatic Progress Boosts Dollar

Gold prices (XAU/USD) experienced a sharp sell-off, diving more than 3% to reach approximately $4,869 per ounce. The decline followed reports from a senior White House official indicating signs of progress in diplomatic talks between Washington and Tehran. This diplomatic breakthrough significantly reduced the geopolitical risk premium that had previously bolstered gold's appeal as a safe-haven asset. As geopolitical tensions eased, the US Dollar (USD) saw a rebound in demand, exerting further downward pressure on the precious metal. Market participants reacted quickly to the news, shifting capital away from commodities and toward the strengthening Greenback. The move represents a major market event, highlighting the profound impact of Middle Eastern diplomacy on global financial markets.