Gold Surges as Middle East Ceasefire Triggers Oil Sell-Off

Gold prices surged past $4,095 per ounce on Monday as the Middle East ceasefire triggered an oil sell-off. The precious metal's value increased by 1.1% during early trading sessions.

The ceasefire between Washington and Tehran led to a sharp downturn in crude markets, erasing over 5% of the prior week's advances. Brent crude had momentarily neared the $100-per-barrel threshold as anxieties mounted regarding possible interruptions to maritime traffic through critical chokepoints.

The Trump administration terminated its aerial bombardment initiative on Friday following 13 consecutive evenings of offensive operations targeting Iranian infrastructure.

Market participants anticipate a Federal Reserve monetary policy announcement scheduled for Wednesday. The central bank is expected to maintain current interest rate levels, but there are approximately 33% odds of a rate increase.