US-Iran Pause Boosts Gold Prices Towards $4,100

Gold prices rebounded on Monday, climbing towards $4,100 an ounce as tensions between the US and Iran eased following a weekend pause in hostilities. The precious metal rose by about 1% to $4,092.40 an ounce, its highest level since mid-June.

The de-escalation between Washington and Tehran led to a sharp decline in oil prices, with Brent crude falling around 6% to trade below $90 a barrel. Lower energy costs tend to ease inflation pressures, reducing the perceived need for interest rate increases from central banks, which typically supports demand for non-yielding assets like gold.

Investors moved back into the precious metal on Monday after weeks of weaker demand, following a difficult recent stretch that saw prices fall towards $4,030 an ounce. The rebound follows President Donald Trump's warning of expanded military action against Iran and his vow to hold Tehran accountable for any future attacks by Houthi forces in the Red Sea.