Gold Climbs as U.S.-Iran Fighting Pause Sends Oil Prices Tumbling
TLDR
- Spot gold rose 1.1% to around $4,095 an ounce on Monday
- Oil prices dropped sharply after the U.S. and Iran paused military operations over the weekend
- President Trump halted U.S. bombing of Iranian targets on Friday after 13 consecutive nights of strikes
- A weaker U.S. dollar and falling Treasury yields added support to gold prices
- All eyes are now on the Federal Reserve’s policy decision due Wednesday
Gold prices moved higher on Monday as a weaker dollar and falling oil prices shifted market sentiment. The pause in U.S.-Iran hostilities drove crude prices down sharply, easing inflation fears and sending investors toward safe-haven assets.
Spot gold climbed 1.1% to $4,095.37 an ounce by early Monday morning. Gold futures for August delivery gained 0.7% to $4,097.40 an ounce.
The precious metal had already ended last week with a gain of nearly 1%, despite a volatile trading period.
Oil Drops as Middle East Tensions Ease
Oil prices fell more than 5% on Monday, reversing a large part of last week’s gains. Brent crude had briefly approached the $100-a-barrel mark after concerns grew over potential disruptions to shipping through the Strait of Hormuz and the Red Sea.
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