Gold Holds Steady as US-Iran Tensions Ease, Oil Prices Drop

Gold prices held steady around $4,075.60 an ounce on Monday as tensions between the US and Iran eased, causing oil prices to drop.

The lower oil prices relieved some inflation pressure and helped Treasury yields ease, but gold's bid is still being capped by the risk of a 25-basis-point interest rate hike from the Federal Reserve on Wednesday.

Despite this uncertainty, the Strait of Hormuz remains a central macro risk premium for energy and gold, with recent disruptions forcing Gulf producers to rely more heavily on pipeline alternatives.