Gold Rises Amid Oil Price Drop After Trump Halts Iran Strike Plans

Gold prices rose on Monday after US President Donald Trump backed away from a planned military operation against Iran, leading to a decline in oil prices. The sudden easing of tensions pushed bullion prices higher overnight, but analysts warn that the rally may depend on further oil weakness or a softer dollar.

The spot gold price increased by 0.4% and traded around $4,055.76 per ounce, while US gold futures rose about 0.9% to reach around $4,054.00 per ounce as of early trading.

Tim Waterer, a leading market analyst at KCM Trade, stated that gold's position remains a 'calming' strategy during periods of volatility. He noted that a sustained breakout higher would likely require a clearer fall in oil prices, a softer dollar, or a shift in expectations for the Fed's rate toward a more dovish policy.

Gains were also recorded in other precious metals: silver rose 0.9% to around $58.13 per ounce, platinum up 0.5% to $1,649.35 per ounce, and palladium up 1.7% to about $1,294.92 per ounce.