Gold Soars on Eased Iran Tensions, Oil Price Relief

GOLD prices rose on Monday after a pause in US-Iran strikes eased concerns about oil supply risks and inflation. The yellow metal reached as high as $4,100 an ounce in early trading, representing a gain of over 1%.

The sudden halt in hostilities between the two nations has alleviated fears that oil prices would continue to surge, putting upward pressure on inflation rates. This, in turn, has led some investors to seek refuge in gold as a safe-haven asset.

The US Federal Reserve's interest rate hike concerns have also been eased by the developments, making it less likely that the central bank will raise borrowing costs soon. Gold has largely hovered around $4,000 an ounce since late June, with some traders viewing this level as a key support point.