Gold rises on weaker dollar, Middle East pause, Fed outlook
Spot gold increased by roughly 1% to $4,094.50 an ounce in Asian trading as of 23:02 ET (03:02 GMT), while U.S. gold futures for August expiry rose 0.6% to $4,096.6. The broader advance follows a 0.3% decline in the U.S. Dollar Index, which made dollar‑priced bullion cheaper for investors holding other currencies.
Silver also climbed, gaining 2% to $59.37 per ounce, and platinum rose 1.6% to $1,618.83 per ounce. Concurrently, crude oil prices fell more than 5% in early Monday trading after the United States and Iran announced a pause in their military strikes over the weekend. The pause ended a streak of 13 consecutive nights of U.S. strikes on Iranian targets, a campaign halted by President Donald Trump to allow diplomatic efforts, with Iran also refraining from retaliatory attacks on neighboring bases.
The oil price drop could ease inflation pressures, but market participants remain focused on the Federal Reserve’s policy meeting later this week. The central bank is widely expected to keep interest rates unchanged on Wednesday, though traders will scrutinise remarks from Fed Chair Kevin Warsh for any indication of the timing of future rate cuts and the Fed’s assessment of inflation risks. Investors will also watch upcoming U.S. economic releases, including inflation and labor‑market data, for additional guidance on the policy path.