Gold Rises as Trump Holds Off on Iran Attack

Gold prices rose on Monday as oil prices fell following US President Donald Trump's decision to hold off on fresh attacks on Iran, easing concerns over inflation and higher interest rates.

The metal has been under pressure since the start of the US-Iran conflict due to rising inflation potentially sparking interest rate hikes. However, spot gold was up 0.4% at $4,055.76 per ounce as of 0210 GMT.

US gold futures rose 0.9% to $4,054.00, while spot silver gained 0.9% to $58.13 and palladium firmed 1.7% to $1,294.92.

Tim Waterer, chief market analyst at KCM Trade, said that a sustained break higher for gold would require 'a clearer drop in oil prices, a softer dollar, or a shift in Fed rate expectations toward a more dovish stance.'