Gold Rises as US-Iran Truce Eases Oil Prices Ahead of Fed Decision

Gold prices climbed by about 1% on Monday as easing tensions between the United States and Iran pushed oil prices lower, reducing inflation concerns and boosting demand for the precious metal ahead of a key US Federal Reserve meeting this week.

Spot gold rose to around $4,093 per ounce, while US gold futures also posted gains.

Analysts said the decline in oil prices, combined with a weaker US dollar and lower Treasury yields, helped support the gold market.

The gains followed reports that Iran and the United States had paused military strikes over the weekend.

The reduction in hostilities raised hopes of a diplomatic solution and contributed to a sharp fall in crude oil prices, with Brent crude dropping more than 7%.

Investors are now focused on the Federal Reserve’s policy meeting on Wednesday, where officials are expected to decide whether to raise interest rates. Markets remain divided on the outlook, with many traders anticipating further rate increases later this year.

A weaker dollar has also made gold more affordable for international buyers, adding to the metal’s appeal as a safe-haven asset during periods of economic and geopolitical uncertainty.

Other precious metals also recorded gains, with silver, platinum and palladium all moving higher as investors responded positively to improving market sentiment.

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