Gold Prices Climb as US Dollar Softens and Mideast Tensions Ease

Gold prices rose on Monday, bolstered by a weakening US dollar and easing tensions in the Middle East. Spot gold increased by 1.1% to $4,096.36 per ounce, while August U.S. Gold Futures gained 0.68% to $4,098.60 per ounce.

The US Dollar Index dropped 0.3%, making bullion more affordable for buyers holding alternative currencies and boosting demand. Lower crude oil prices also supported the market as the United States and Iran paused military operations over the weekend.

Crude oil prices declined by over 5% after President Donald Trump halted a bombing campaign against Iranian targets on Friday, allowing room for diplomatic negotiations.

The upcoming Federal Reserve policy announcement on Wednesday will be closely watched, with investors expecting the central bank to keep interest rates at current levels. Market participants will scrutinize Chair Kevin Warsh's remarks for insights on future rate cuts and inflation risk assessments.