Gold Soars as Iran Pause Sends Oil Prices Plummeting

Gold prices surged on Monday as the US-Iran conflict paused, sending oil prices sharply lower and easing inflation concerns. The pause in hostilities allowed gold to rise as a safe-haven asset.

The spot price of gold increased by 0.9% to $4,087.79 per ounce, while US gold futures rose 0.5% to $4,089.90. Tim Waterer, chief market analyst at KCM Trade, attributed the rise in gold prices directly to the combined moves in oil and the US dollar.

Waterer noted that the US dollar index fell by 0.3%, making dollar-priced metals cheaper for holders of other currencies. This development benefited gold as it becomes more attractive to investors.

The pause in hostilities followed reports that Iran would halt its own attacks as long as the United States maintains its pause. Oil prices dropped over 4% on the day, which previously stoked inflation fears and expectations of central bank rate hikes.