Gold prices posted strong gains at the start of trading on Monday, buoyed by easing tensions in the Middle East.
Oil prices fell following the rise in gold prices, which eased concerns about inflation and continued monetary tightening.
Spot gold rose 1.3% to $4,103.99 per ounce.
Meanwhile, U.S. August gold futures rose 0.9% to $4,106.10 per ounce.
This rise came after a senior Iranian official announced that Tehran would halt its attacks as long as the United States maintained the same stance.
This bolstered hopes that the conflict could be defused through diplomatic channels.
Conversely, oil prices fell by about 5%, which helped ease fears of rising inflation.
It also eased pressure on global markets.
Gold also benefited from the weakening U.S. dollar and the decline in yields on 10-year U.S. Treasury bonds.
This boosted demand for the precious metal.
Investors are awaiting this week’s Federal Reserve meeting, amid widespread expectations that interest rates will remain unchanged.
However, markets still price in an 80% probability of a rate hike in September, according to FedWatch data.
Other precious metals also posted notable gains, with silver, platinum, and palladium rising as investor appetite improved.
Read also:
