Gold Gains as Trump Delays Iran Strike, Oil Prices Plummet

Gold prices rose on Monday after US President Donald Trump delayed military action against Iran and signaled new talks with Tehran, leading to a decline in oil prices by more than 5%. This easing of concerns about inflation helped gold gain, but analysts note that the metal's next move will largely depend on developments in energy markets, the dollar, and expectations for US interest rates.

According to Tim Waterer, Chief Market Analyst at KCM Trade, gold has made a 'relatively cheery start' to the week, but gains remain limited due to continued uncertainty surrounding the Middle East and energy markets. Gold futures rose 0.9% to $4,054.00 per ounce, while spot gold gained 0.4% to $4,055.76.

The US dollar came under pressure after authorities intervened in foreign exchange markets to support the Japanese yen, making dollar-priced gold more affordable for international buyers. Waterer noted that a sustained break higher for gold would likely require a clearer drop in oil prices, a softer dollar, or a shift in Fed rate expectations toward a more dovish stance.

Investors are now turning their attention to key US employment data due this week, including job openings data and the nonfarm payrolls report. The outcome of these reports could influence gold's next move, with stronger-than-expected US jobs data potentially limiting further gains in the metal.