Gold Rises as Trump Delays Iran Attack, Oil Prices Plummet
Gold prices rose on Monday after US President Donald Trump delayed military action against Iran and signaled new talks with Tehran. This move helped push oil prices sharply lower, easing concerns about inflation and higher interest rates.
The spot gold price increased by 0.4% to $4,055.76 per ounce, while US gold futures gained 0.9% to $4,054.00.
Tim Waterer, Chief Market Analyst at KCM Trade, noted that gold had made a 'relatively cheery start' to the week but gains remained limited due to uncertainty in oil markets and the Middle East.
Gold has been under pressure since the US-Iran conflict began, as rising energy prices fueled concerns about inflation. However, with renewed diplomacy on the table, market sentiment may shift towards a more dovish stance from the Federal Reserve.