Gold Prices Rise as Oil Falls Amid U.S.-Iran Conflict and Fed Decision Looms

Gold and silver prices rose modestly on Monday as lower oil prices eased inflation concerns linked to the U.S.-Iran conflict. Spot gold traded near $4,075.60 an ounce, up 0.59%, while silver was at $58.29, up 0.45%. The market remains cautious ahead of the Federal Reserve's upcoming decision, with interest rates posing the main risk to gold's price.

The sharp drop in oil prices after a pause in U.S.-Iran attacks reduced inflation pressure, but uncertainty remains due to geopolitical risks in the Strait of Hormuz and unclear Fed policy. Investors are watching for the Fed's move, which could cap gold's gains if rates stay restrictive.