US-Iran Truce Fuels Gold Rally Above $4,100
Gold prices surged to $4,105.30 per troy ounce on Monday as the surprise ceasefire between the US and Iran reshaped the commodity landscape.
The 1.22% increase from Friday's close of $4,055.70 marks the first meaningful rally since Washington suspended airstrikes on Iranian territory after 13 consecutive nights of bombardment.
Oil's plunge, with Brent crude tumbling more than 5%, and a weakening dollar added to gold's ascent, making the dollar-denominated metal more affordable for international buyers.
Central banks have collectively purchased roughly 1,000 tonnes annually over the past four years, according to analysts tracking official sector activity, and a recent survey indicates that 45% of reserve managers intend to increase their gold allocations further.