Oil Price Decline Lifts Gold Prices to $4,100

The price of gold rebounded on Monday after a pause in U.S.-Iran hostilities led to a sharp decline in oil prices, easing inflation and rate pressure that had weighed on the metal.

Brent crude fell by 4.7% to around $92.27, while the yield on the 10-year Treasury note decreased by four basis points to about 4.63%, both of which are supportive for gold.

The U.S. dollar also softened by roughly 0.3%, further easing inflation pressure and giving gold room to challenge its resistance zone at $4,185.

However, the Fed's decision on July 29 remains a key catalyst for gold prices, with a hold still the base case according to CME FedWatch, but September rate pricing is still hawkish, limiting upside potential.