Gold Prices Soar as Middle East Tensions Ease, Oil Prices Decline
Gold prices surged on Monday after tensions in the Middle East eased and oil prices declined. Spot gold rose 1.4% to $4,110.56 per ounce, while US gold futures traded up 1% at $4,112.10.
The weakening of the dollar index was also a factor increasing demand for gold. Oil prices fell over 4% due to expectations that tensions between the US and Iran will decrease.
Tim Waterer, KCM Trade Chief Market Analyst, commented, 'Gold is a clear winner today from the softening in both oil and the US dollar.' The retreat in oil prices alleviated global inflation concerns, supporting precious metals.
The market now focuses on the US Federal Reserve's (Fed) interest rate decision. Waterer stated that he maintains his expectation of a rise in gold in the long term, saying, 'Until a lasting peace is achieved, gold's trajectory will continue to be influenced by geopolitical developments.'