Gold Edges Higher as Iran Strike Delay Weighs on Oil Prices

Gold prices rose on Monday after President Trump delayed a planned military strike on Iran, contributing to a decline in oil prices and shifting market expectations around inflation and interest rates.

As of 21:15 ET (01:15 GMT):

Spot gold (XAU/USD): $4,053.37 per ounce, +0.3%
Gold futures: $4,108.70, +0.1%
Spot silver (XAG/USD): $58.09 per ounce, +0.8%
Spot platinum (XPT/USD): $1,652.60 per ounce, +0.4%

Trump said Iran and neighboring countries had requested additional time to finalize negotiations covering the Strait of Hormuz and Tehran's nuclear program, easing immediate concerns over regional escalation.

Oil fell by more than $5 per barrel in early Asian trading following the announcement. Lower energy prices can influence inflation expectations, which may affect real yields and the relative appeal of non-yielding assets such as gold. The U.S. Dollar Index also moved below 100, a development that may improve gold's affordability for buyers using other currencies.

At the same time, expectations for additional monetary tightening continued to influence market sentiment. Three Federal Reserve officials who dissented at last week's meeting reiterated on Friday that inflation remains elevated and supported an immediate rate increase.

Market participants are expected to focus on this week's U.S. labor market releases, including JOLTS job openings, the ADP employment report, weekly jobless claims, and Friday's nonfarm payrolls, as these data may influence expectations for future Federal Reserve policy.