Gold Prices Rebound as Tensions Eased and Oil Prices Plummet

Gold prices recovered at the start of the week, as tensions between the US and Iran temporarily subsided. This helped to ease concerns about energy supply and inflationary pressure.

The spot gold price decreased by just 0.11% to $4,088.41 per ounce, while August gold futures contracts increased by 0.47% to $4,089.90 per ounce. Meanwhile, silver prices rose 1.9% to $59.29 per ounce.

The sharp drop in oil prices also contributed to the rise in gold prices, with Brent oil falling below $90 per barrel at one point. This decrease helped to reduce concerns about inflationary pressure, which had been putting downward pressure on gold in recent weeks.

Despite the recovery, gold is still 20% lower than its peak price of nearly $5,600 per ounce in January, when a multi-year upward cycle brought prices to their record high. The market will continue to focus on the US Federal Reserve's interest rate decision and June consumer inflation data, which could create mixed signals for monetary policy prospects.