The financial world reacted swiftly. The New York Times reported that markets rallied as the immediate threat of strikes on Iranian energy assets was deferred, though high gas prices continue to weigh on the global economy and on Trump’s political standing.
Oil prices fell sharply within minutes of Trump’s announcement, according to Greek outlet Ethnos. But the most dramatic move may have been in gold, which has been on a historic losing streak. According to Dawn, spot gold plunged more than 8% on Monday to $4,097.99 per ounce — its lowest level in four months — extending losses into a ninth consecutive session. The precious metal shed more than 10% the previous week, its steepest weekly decline since February 1983, and has now retreated roughly 25% from its record peak of $5,594.82. The escalating Middle East conflict has paradoxically hurt gold by stoking inflation fears and raising expectations of higher global interest rates.
In Pakistan, gold prices fell by over Rs43,000 per tola in a single day.
