Gold prices in Dubai rose on Monday morning, while oil prices retreated following a peace agreement reached between the United States and Iran.

The price of 24K gold rose by AED 13.75 to AED 521.75 per gram at the start of trading on Monday. Similarly, 22K gold increased by AED 12.25 to reach AED 483 per gram.

Other gold variants also opened higher, with 21K, 18K, and 14K trading at AED 463, AED 396.75, and AED 309.5 per gram, respectively.

On the global market, gold rose 1.24 per cent to $4,329 per ounce, while silver increased by 1.88 per cent to $70.49 per ounce.

US and Iranian officials announced on Sunday that they have agreed on a peaceful framework to end the conflict, lift the US blockade on Iran, and reopen the Strait of Hormuz.

Pakistan Prime Minister Shehbaz Sharif stated in a post on X that the agreement is scheduled to be officially signed in Switzerland this Friday. Following the announcement of the peace deal, oil prices plunged by more than 4.5 per cent on Monday.

Precious metal prices have been under pressure since the outbreak of the war involving the US and Israel against Iran in late February. The effective closure of the Strait of Hormuz had triggered a surge in global oil prices, heightening inflation concerns and expectations that interest rates would remain elevated for an extended period.