Oil Prices Plunge as Trump Holds Off on Iran Attack

Gold prices rose on Monday as oil prices fell after U.S. President Donald Trump held off on fresh attacks on Iran in hopes of a swift deal, slightly easing concerns over inflation and higher interest rates.

Spot gold was up 0.4% at $4,055.76 per ounce, while U.S. gold futures rose 0.9% to $4,054.00.

The U.S. dollar came under pressure after authorities intervened in the foreign exchange market to support the yen, making dollar-priced bullion more affordable for overseas buyers.

Tim Waterer, chief market analyst at KCM Trade, noted that gold has made a relatively cheery start to the week but gains remain limited given the uncertainty around the oil markets and the Middle East.