SPDR Gold Shares is trading 3.2% up today as a landmark U.S.-Iran peace agreement and the reopening of the Strait of Hormuz trigger a significant repricing of global inflation and interest rate expectations.
- The geopolitical breakthrough led to a sharp 4% drop in oil prices, prompting investors to price in lower future inflation and a more dovish outlook for Federal Reserve policy.
- While global equities and cryptocurrencies are rallying in a broad rotation toward risk assets, gold continues to see support via bullion-linked ETFs as markets anticipate lower real yields.