Gold firms as oil prices slump after Trump holds off on Iran attack
Gold rose on Monday as oil prices fell after U.S. President Donald Trump held off on fresh attacks on
Iran in hopes of a swift deal, slightly easing concerns over
inflation and higher interest rates.
Spot gold was up 0.7% at $4,068.54 per ounce, as of
0437 GMT. U.S. gold futures rose 0.9% to $4,066.60.
The US dollar came under pressure after authorities
intervened in the foreign exchange market to support the yen,
making dollar-priced bullion more affordable for overseas
buyers.
Gold has made a relatively cheery start to the week but
gains remain limited given the uncertainty around the oil
markets and the Middle East, so it’s an upbeat but guarded start
for the metal, said Tim Waterer, chief market analyst at KCM
Trade.
Trump said talks with Iran will happen on Monday but
declined to set a deadline for an agreement. Oil prices fell
more than 5%.
Gold has come under pressure since the start of the
U.S.-Iran conflict, as a war-driven rise in inflation could
prompt central banks to raise interest rates. Although bullion
is traditionally viewed as a hedge against inflation, its appeal
tends to diminish in a high-interest-rate environment because it
does not yield interest.
Market participants will also focus on a slew of U.S. jobs
reports due this week, including job openings data, the ADP
employment report, weekly jobless claims and the nonfarm
payrolls report.
“Any renewed escalation in the Middle East that pushes oil
higher, or a strong NFP print that reinforces September
rate-hike odds, could cap the upside,” Waterer said.
Three U.S. Federal Reserve officials who dissented at the
policy meeting last week in favour of a rate hike expressed
concerns on Friday that without an immediate increase in
short-term borrowing costs, inflation will stay stuck above the
Fed’s 2% target.
Analysts at Standard Chartered said in a note that they
continue to expect gold to find near-term support before
recovering on seasonal buying.
Spot silver gained 1.4% to $58.46, platinum
climbed 0.5% to $1,650.63, and palladium firmed 1.6% to
$1,293.50.
Published on August 3, 2026
