Gold Soars on Weakened Dollar and Plummeting Oil Prices

Gold prices surged more than 1% on Monday as easing tensions in the Middle East sent oil prices plummeting, weakened the US dollar, and prompted investors to scale back expectations for near-term US interest rate increases ahead of this week's Federal Reserve policy meeting.

The rebound indicates a shift from inflation fears to a more benign policy environment after Washington and Tehran signaled a pause in hostilities, easing concerns that the conflict would further disrupt global energy supplies.

Sport gold rose 1.3% to $4,103.59 an ounce by 0723 GMT, while US gold futures gained 0.9% to $4,106.00.

Tim Waterer, chief market analyst at KCM Trade, said 'Gold is a clear beneficiary today of the dual price action in oil and the US dollar.'