Gold Surges as Middle East Tensions Ease, Oil Prices Fall

Gold prices surged more than 1% on Monday as tensions in the Middle East eased following a pause in fighting, leading to lower oil prices and reduced concerns over inflation.

Spot gold rose by 1.3% to $4,103.99 per ounce at 0058 GMT, while U.S. gold futures for August delivery increased by 0.9% to $4,106.10 per ounce.

The decline in oil prices, which fell by 5%, is a key factor contributing to the increase in gold prices. Higher oil prices typically fuel inflation concerns and make it more likely that interest rates will remain elevated for an extended period.