Trump's Iran Reversal Sends Gold Soaring as Oil Prices Plummet

Gold prices rose on Monday after US President Donald Trump announced he would hold off on attacking Iran, easing concerns about inflation and interest rates. The decision came as oil prices plummeted over $5 a barrel at the open.

Spot gold was up 0.7% to $4,067.06 per ounce, while US gold futures rose 0.9% to $4,065.60. Silver also gained 0.7% to $58.02 per ounce, platinum climbed 0.7% to $1,653.78, and palladium firmed 1.5% to $1,293.00.

Trump stated on his Truth Social platform that Iran and other Middle Eastern countries had requested time to complete a deal that would lead to the immediate reopening of the Strait of Hormuz and an end to Iran's nuclear threat.

Market participants will also be focused on upcoming US jobs reports, including job openings data, the ADP employment report, weekly jobless claims, and the nonfarm payrolls report. The Federal Reserve officials who dissented at last week's policy meeting in favor of an interest rate hike expressed concern that without an immediate increase in short-term borrowing costs, inflation will stay above the 2% target.