Gold Soars as US-Iran Tensions Ease and Oil Prices Plummet

Gold prices surged on Monday as tensions between the US and Iran eased, leading to a decline in oil prices. The drop in crude oil prices reduced inflation concerns ahead of the Federal Reserve's interest rate decision.

The U.S.-Iran pause provided markets with a strong sign of de-escalation, reducing fears of supply disruptions in the Persian Gulf. Brent crude and West Texas Intermediate (WTI) crude both fell more than 5%, easing immediate inflation risks.

Investors turned to gold as the U.S. dollar weakened, making dollar-denominated gold less expensive for overseas buyers. The U.S. Dollar Index fell 0.3%.