Gold Surges as US-Iran Tensions Ease, Oil Prices Plummet

Gold prices rose over 1% on Monday as tensions in the Middle East eased following a pause in hostilities between the US and Iran. The increase in gold prices came after oil prices plummeted by 5%, reducing concerns about inflation and prolonged high interest rates.

The U.S. Federal Reserve is widely expected to keep interest rates unchanged this week, although traders are still pricing in an 80% chance of a hike in September, according to the CME FedWatch Tool.

Silver prices also surged, rising by 2.7% to $59.74 per ounce, while platinum and palladium climbed 2% and 2.3%, respectively.