Trump's Iran Halt Boosts Gold Amid Oil Price Slump
Gold prices rose on Monday, August 3, as oil prices plummeted after US President Donald Trump announced he would hold off on a fresh attack on Iran. The decision came as part of an effort to negotiate a swift deal that would lead to the reopening of the Strait of Hormuz and an end to Iran's nuclear threat.
The news had a positive impact on gold, which has faced pressure since the start of the US-Iran conflict. A war-driven rise in inflation could prompt central banks to raise interest rates, making gold less attractive as it does not yield interest.
Silver and platinum also saw gains, rising 0.7% each, while palladium firmed up 1.5%. The moves come ahead of a slew of US jobs reports due this week, including job openings data, the ADP employment report, weekly jobless claims, and the nonfarm payrolls report.