Gold rises above $4,100 as U.S.-Iran ceasefire pause cuts oil prices
Gold climbed above $4,100 an ounce on Monday amid a temporary halt in hostilities between the United States and Iran. The lull reduced oil prices by nearly 9.5%, easing inflation concerns ahead of the Federal Reserve's upcoming meeting later this week. Spot gold rose as much as 1.6% to top $4,100, while silver jumped 1.9%. A drop in crude oil prices and a weaker U.S. dollar index helped boost demand for precious metals. The pause follows discussions between Iranian and Omani officials over shipping through the Strait of Hormuz. Analysts noted that lower energy costs reduce pressure on central banks to raise interest rates, which typically weighs on gold's appeal as it does not generate income. Market participants are closely watching the Fed’s decision this week, with a 66% chance of no rate change and a 77% probability of an increase in September. Gold has been range-bound since late June but remains supported near $4,000 due to persistent demand. The metal lost over 20% from its peak earlier in the year following renewed U.S.-Iran tensions.