Gold prices moved higher on Monday as weakness in the U.S. dollar supported the precious metal. Spot gold climbed 1.1% to $4,096.36 an ounce, while August U.S. Gold Futures advanced 0.68% to $4,098.60 an ounce by early trading. The metal had posted gains of nearly 1% at the end of the prior week despite volatile conditions.
The U.S. Dollar Index declined 0.3% on Monday, making gold more accessible to investors using other currencies and underpinning demand. Energy markets also contributed to sentiment shifts as crude oil prices retreated sharply following a pause in military operations between the United States and Iran. President Donald Trump halted a bombing campaign that had lasted 13 consecutive nights, creating an opportunity for diplomatic engagement, while Iran also refrained from launching retaliatory attacks over the weekend. Oil prices fell more than 5%, reversing gains from the prior week that had been driven by concerns about supply disruptions in key shipping routes.
Investor focus was directed toward the Federal Reserve’s policy decision scheduled for later this week. The central bank is widely anticipated to maintain interest rates at current levels, though market participants are closely monitoring remarks from Chair Kevin Warsh regarding the potential timeline for future rate reductions and inflation risk assessments. Additional U.S. economic data on inflation and labour markets are expected to provide further insights into the Fed’s policy direction.
Other precious metals also posted gains. Silver rose 2.1% to $59.39 per ounce, while platinum advanced 2.3% to $1,630.83 per ounce. Industrial metals showed mixed results, with benchmark copper futures on the London Metal Exchange rising 0.4% to $13,693.58 per tonne, though U.S. Copper Futures remained relatively flat at $6.36 per pound.
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