Gold rises more than 1% as oil retreats and geopolitical fears ease

Gold prices rose by more than one percent in Monday’s trading, supported by falling oil prices, a weaker US dollar, and declining yields on US Treasury bonds, as tensions in the Middle East eased, boosting demand for the precious metal.

Spot gold rose 1.3 percent to $4,103.99 per ounce by 00:58 GMT, while US August gold futures gained 0.9 percent to $4,106.10 per ounce.

The gains followed comments by a senior Iranian official, as reported by Reuters, who confirmed that Iran would halt its attacks as long as the United States adhered to the same restraint, bolstering hopes for a diplomatic resolution that would ease regional tensions.

Conversely, oil prices fell by about five percent as investors increasingly bet on a de-escalation of the conflict, which helped alleviate concerns about rising inflation and the prospect of interest rates remaining at elevated levels for longer.

Gold also received additional support from the decline in the US dollar and lower yields on 10-year US Treasury bonds, enhancing the metal’s appeal to investors.