Gold Holds Steady as Oil Prices Crash Amid Iran Diplomacy Hopes

The gold price held steady above $4,050 on August 4, 2026, as lower oil prices cooled inflation expectations and reduced bets on further US interest rate rises.

This dynamic supports gold even as safe haven demand eases, according to analysis from UBS cited by CNBC.

Meanwhile, West Texas Intermediate (WTI) crude oil crashed around 7.4% to trade near $78 a barrel after President Trump's decision to hold off a planned strike on Iran and pursue talks instead.

The move followed the prospect of talks progressing rather than a confirmed resolution, which was enough to trigger the repricing and unwind supply disruption hedges that had built up during the earlier escalation.