Gold Rises as Trump Delays Iran Attack

Gold prices have risen on Monday after US President Donald Trump delayed military action against Iran and signalled new talks with Tehran. This move has pushed oil prices lower, easing concerns about inflation and higher interest rates.

The spot gold price rose 0.4% to $4,055.76 per ounce, while US gold futures gained 0.9% to $4,054.00. The US dollar also came under pressure after authorities intervened in foreign exchange markets to support the Japanese yen, making dollar-priced gold more affordable for international buyers.

Tim Waterer, Chief Market Analyst at KCM Trade, said that while gold has made a relatively cheery start to the week, gains remain limited given the uncertainty surrounding the Middle East and energy markets. He noted that a sustained break higher 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 a series of US labour market reports due this week, including job openings data, the ADP employment report, weekly jobless claims and the closely watched nonfarm payrolls report. These developments could have a significant impact on gold prices, as they will influence expectations for US interest rates.