Gold Price Surges on Pause in US-Iran Fighting and Lower Oil Prices
The gold price surged more than 1% on Monday as the pause in US-Iran fighting led to lower oil prices, easing some inflation concerns. Investors are now focused on the upcoming Federal Reserve policy decision.
According to Tim Waterer, chief market analyst at KCM Trade, 'gold is a clear beneficiary today of the dual price action in oil and the US dollar.' The US dollar index was down 0.3%, making gold more affordable for other currency holders.
The Iranian official's statement that Iran will halt its own attacks as long as the United States does the same has contributed to the decline in oil prices, which were down over 4% for the day. This development is likely to impact gold's performance in the short term, but Waterer remains 'constructively bullish on gold' and believes it will remain volatile until a more durable peace takes hold.