Gold Prices Rise Amid Oil Retreat

Gold prices rose on Monday amidst an oil price decline, after US President Donald Trump cancelled a potential attack on Iran. This aimed at a swift agreement, easing inflation concerns and the likelihood of interest rate hikes. Spot gold prices climbed 0.7% to $4067.06 per ounce, while US gold futures increased 0.9% to $4065.60 per ounce by 00:23 GMT. President Trump announced late Saturday on Truth Social that Iran and other Middle Eastern countries sought time to finalize a deal ensuring the "immediate, full, and comprehensive" reopening of the Strait of Hormuz and the "end of the Iranian nuclear threat." Simultaneously, oil prices fell over five dollars per barrel at Monday's open. Gold has faced pressure since the US-Iran conflict began, as war-induced inflation might push central banks to hike interest rates. While gold traditionally hedges against inflation, its appeal typically wanes amid higher rates due to its lack of yield.