Gold Prices Rise as Trump Holds Off on Iran Attack

Gold prices rose on Monday as oil prices plummeted after US President Donald Trump announced that he would hold off on attacking Iran in hopes of a swift deal. This development slightly eased concerns about inflation and higher interest rates, which had been putting pressure on gold.

According to the KLSE Screener, spot gold was up 0.7 per cent at $4,067.06 per ounce as of 0023 GMT, while US gold futures rose 0.9 per cent to $4,065.60.

The Trump administration's decision not to launch a fresh attack on Iran was seen as a positive development for the global economy, as it reduces the risk of a war-driven rise in inflation. This, in turn, makes it less likely that central banks will raise interest rates, which would diminish gold's appeal due to its lack of yield.

However, market participants are still keeping an eye on upcoming US jobs reports, including job openings data, the ADP employment report, weekly jobless claims, and the nonfarm payrolls report. These releases could provide more insight into the health of the US economy and potentially impact gold prices further.