Gold Rises as Trump Holds Off Iran Attack, Oil Prices Plunge
Gold prices rose on Monday as oil prices plummeted after US President Donald Trump announced he was holding off on a fresh attack on Iran. The news came from Trump's Truth Social platform, where he stated that Iran and other Middle Eastern countries had asked for time to complete a deal that would lead to the immediate reopening of the Strait of Hormuz and an end to Iran's nuclear threat.
Oil prices fell by more than $5 a barrel at Monday's open, while gold rose 0.7% to $4,067.06 per ounce. US gold futures also increased 0.9% to $4,065.60.
The rise in gold prices is seen as a result of the decreased concerns about inflation and higher interest rates. However, gold's appeal tends to diminish in a high-interest-rate environment because it does not yield interest.