Gold Surges as US-Iran Tensions Ease, Fed Rate Decision Looms

Gold prices surged on Monday as tensions between the United States and Iran eased following a temporary pause in attacks. US Ambassador to the United Nations Mike Waltz said President Donald Trump is giving negotiations some space while keeping all military options on the table. Tehran also stated it would refrain from fresh attacks as long as Washington did the same.

However, buyers remain cautious as the geopolitical situation remains fluid. Iranian Foreign Ministry spokesperson Esmaeil Baghaei emphasized that the situation in the Strait of Hormuz had not changed and that the strategic waterway remained closed.

Gold's reaction highlights its decoupling from its traditional safe-haven role since the US-Iran war began. Positive developments lift Gold by pushing Oil prices lower, easing inflation concerns and reducing hawkish Federal Reserve bets.