Gold Rallies on Trump's Iran U-Turn, Oil Prices Slump Amid Geopolitical Jitters
Spot gold prices surged on Monday as President Donald Trump announced that the US would pursue negotiations with Iran instead of launching military strikes. The precious metal rose by as much as 0.7% to $4,067.06 per ounce, while U.S. gold futures gained 0.9% to $4,065.60.
The increase in gold prices was supported by the softer US dollar, which made dollar-priced bullion cheaper for overseas buyers. The decline in oil prices also contributed to the rally, with Brent crude falling more than 5% after Trump announced diplomatic talks with Tehran.
OPEC+ approved an increase in collective production quotas beginning in September, adding pressure on crude prices. The additional supply entered a market already reassessing geopolitical risks following Washington's diplomatic pivot, amplifying selling pressure across energy markets.