Gold Surges Past $4,095 as US-Iran Ceasefire Triggers Oil Market Retreat

Gold prices surged past $4,095 per ounce on Monday as investors sought safe-haven assets following a U.S.-Iran ceasefire. The yellow metal advanced 1.1% in early trading hours, with August-dated gold futures contracts rising 0.7%. The retreat in crude oil markets, which plummeted over 5%, also contributed to the increase in bullion prices.

The cessation of military engagement between Washington and Tehran led to a steep selloff in crude markets, reducing inflationary concerns. This shift in investor positioning directed capital flows toward traditional safe-haven instruments such as gold. The declining U.S. dollar strength and retreating Treasury yields also provided tailwinds for bullion.

Market participants are now shifting their focus to the Federal Reserve's monetary policy announcement scheduled for Wednesday, with consensus expectations anticipating the maintenance of current interest rate levels. However, CME FedWatch analytics indicate a one-third probability of a rate increase.