Gold Prices Rise Amid Easing Tensions with Iran
Gold prices rose on Monday as tensions between the US and Iran eased, leading to lower oil prices and a lessening of inflation concerns. The US dollar index fell by 0.3%, making gold more affordable for investors holding other currencies.
The price of spot gold increased by 0.9% to $4,087.79 per ounce, while U.S. gold futures gained 0.5% to $4,089.90. Tim Waterer, chief market analyst at KCM Trade, attributed the rise in gold prices to the dual impact on oil and the US dollar.
The pause in hostilities between the US and Iran led to a decline of more than 4% in oil prices. This reduction in oil prices has eased concerns about inflation, which had been driving up interest rates and making gold less attractive as an investment.
However, Waterer remains 'constructively bullish' on gold in the long term, citing its volatility and reliance on geopolitical headlines. The market is also waiting for the US Federal Reserve's policy decision due later this week, with a 76% chance of a rate hike in September.