Gold prices moved sharply higher on Monday, gaining more than 1% as a weaker US dollar and falling oil prices increased demand for safe-haven assets.
Spot gold rose 1.4% to $4,110.56 per ounce, while US gold futures gained 1% to $4,112.10 per ounce. At the same time, the US Dollar Index slipped 0.3%, making gold more attractive to investors using other currencies.
The rally came as oil prices dropped by more than 4% following news that hostilities between the United States and Iran had come to an end. Lower oil prices eased concerns about inflation, helping support interest in gold and other precious metals.
Investors are also closely watching this week’s Federal Reserve meeting. Markets widely expect US interest rates to remain unchanged, but traders are looking for signals about the future direction of monetary policy and any potential rate cuts in the months ahead.
Other precious metals joined the rally:
- Silver rose 2.8%
- Platinum gained 2.6%
- Palladium increased 2.1%
Analysts say the combination of a softer dollar, lower energy prices, and uncertainty surrounding future Federal Reserve policy has helped strengthen demand for precious metals, with gold continuing to attract investors seeking stability during periods of economic and geopolitical change.
