Gold Gains as Oil Prices Plummet Amid Trump's Iran Decision

Gold prices rose on Monday as oil prices plummeted after US President Donald Trump held off on fresh attacks on Iran, easing concerns over inflation and higher interest rates. Spot gold was up 0.7% at $4,068.54 per ounce, while US gold futures rose 0.9% to $4,066.60.

The US dollar came under pressure after authorities intervened in the foreign exchange market to support the yen, making dollar-priced bullion more affordable for overseas buyers.

Despite this positive start to the week, gains remain limited due to uncertainty around oil markets and the Middle East, said Tim Waterer, chief market analyst at KCM Trade. Trump's decision to hold off on attacks on Iran has led to a decline in oil prices of over 5%.