Gold Fades From Asian Session High on Falling Oil and Hawkish Repricing

Gold's price action on Monday was characterized by a gap higher in Asia, followed by a fade through the New York morning. The XAU/USD pair opened above $4,106 before trimming losses to around $4,075, barely changed from Friday's settle of $4,070.80.

The intraday move mirrored what happened elsewhere on Monday, with every asset experiencing an initial bid followed by a reversal. The S&P 500 futures opened up 0.85% but closed flat at 7,411, while Bitcoin touched $65,359 before sinking to $64,580. Gold's price action was influenced by the decline in Brent crude, which fell over 7% to around $87 and cut July Fed hike odds to 30.5% from 37.4% on Friday.

The US halted a nearly two-week strike campaign against Iran without formal announcement, leading to a signal that Tehran would refrain from retaliation as long as the American pause holds. This development repriced the energy curve and reduced the inflation impulse, supporting gold by capping real yields.