ISLAMABAD: Global financial markets have reacted sharply to the announcement of a two-week ceasefire between the United States and Iran, with gold prices surging to a three-week high as investors pivot toward safe-haven assets. In the international market, spot gold prices jumped by 2.3% to reach $4,812 per ounce, while US gold futures recorded an even more significant increase of 3.4%. The rally extended across the precious metals sector, with silver prices climbing 4.9% to settle at $76.48 per ounce.
The market shift followed US President Donald Trump’s formal announcement of a fourteen-day pause in military operations against Iran, a move intended to facilitate high-level mediation in Islamabad. While the ceasefire has temporarily reduced immediate fears of a full-scale regional war, the remaining geopolitical uncertainty has driven a wave of “flight-to-safety” buying among global investors. Consequently, gold prices in Pakistan are also expected to see a substantial rise today, reflecting the upward momentum in the international bullion market.
In contrast, the energy sector has seen a dramatic cooling effect. Global oil prices have fallen significantly following the news, as the immediate threat to Middle Eastern supply routes diminished. Brent crude dropped below the $100 mark, falling over 13% to approximately $94 per barrel. This sharp decline in the global energy market is expected to translate into a potential reduction in the prices of petroleum products worldwide, offering a rare moment of inflationary relief for consumers as the diplomatic process begins.
