Gold climbed more than 1% on Monday after a pause in hostilities in the Middle East pushed oil prices lower, easing worries about inflation and prolonged high interest rates. FUNDAMENTALSSpot gold rose 1.3% to $4,103.99 per ounce by 0058 GMT. U.S. gold futures for August delivery gained 0.9% to $4,106.10. Iran will halt its own attacks as long as the United States does the same, a senior Iranian official told Reuters on Sunday. The United States pressed pause on its bombing campaign after President Donald Trump's advisers told him they were running out of targets and expressed worries about depleting the U.S. arsenal. Oil prices tumbled 5% as investors hoped for a diplomatic solution that would de-escalate the conflict. Elevated crude oil prices stir market concerns about inflation and the potential for higher-for-longer interest rates. While gold is traditionally seen as a hedge against inflation, its appeal as a non-yielding asset diminishes in a high-interest-rate environment. The dollar and yields on the 10-year U.S. Treasury note fell, further supporting gold. The U.S. Federal Reserve is widely expected to keep rates unchanged this week, although traders are still pricing in about an 80% chance of a hike in September, according to the CME FedWatch Tool. COMEX gold speculators raised net long positions by 4,438 contracts to 123,586 in the week to July 21, CFTC data showed. Spot silver rose 2.7% to $59.74 per ounce, platinum climbed 2% to $1,619.75 and palladium jumped 2.3% to $1,271.93.DATA/EVENTS (GMT)0500 Japan Leading Indicator Revised May 0800 Germany Ifo Business Climate, Curr Conditions, Expectations New Jul 1230 US Durable Goods Jun
Gold rises over 1% as oil tumbles on pause in US-Iran fighting
Gold prices increased over one percent on Monday. A pause in Middle East hostilities lowered oil prices and inflation worries. This development supported gold's appeal as investors anticipated stable interest rates. Other precious metals like silver and platinum also saw gains. Speculators increased their net long positions in COMEX gold.







