Trump's Iran Talks Spark Gold Rally Amid Lower Oil Prices
Gold prices are rising as US President Donald Trump announced that fresh negotiations with Iran would begin later Monday, easing concerns over energy-driven inflation. This development is providing a boost to bullion, which had seen out July with a 1% gain - its first monthly increase since February.
The spot gold price was trading around $4,070 an ounce as of 7:39 a.m. in Singapore, a 0.6% increase from the previous day. This comes after Trump said on Sunday that he had called off a massive attack on Iran after allies in the Middle East asked him to pursue a deal instead.
Benchmark Brent crude fell more than 7%, which is contributing to lower inflationary pressures and reducing the likelihood of higher interest rates for longer.
The Federal Reserve's next steps are also being closely monitored, with Chairman Kevin Warsh considering reducing the frequency of policy meetings. This would be a significant shift for the US central bank, which currently meets eight times a year.