Gold Rises as US-Iran Diplomacy Eases Tensions
Gold prices are up as diplomatic efforts between the US and Iran ease tensions and reduce the need for safe-haven assets like the USD.
The US paused its bombing campaign against Iran on Friday, following 13 consecutive nights of strikes, allowing hopes for a resolution to end the five-month-old conflict to revive.
US ambassador to the UN Mike Waltz said President Donald Trump wants to give negotiations 'a little bit of room'. In response, an Iranian official told Reuters that Tehran will halt its own attacks as long as the US does the same.
The easing of hostilities dragged crude oil prices lower and forced investors to trim their bets for an immediate interest rate hike by the US central bank, causing a modest pullback in US Treasury bond yields and weighing on the USD.
However, traders seem hesitant to place aggressive bearish bets on the USD, opting to wait for more cues about the Fed's policy path ahead of this week's crucial FOMC meeting.