XAU/USD climbs to $4,556 as progress in US-Iran talks pressures the USD and sends crude prices down over 5%.
Gold prices surged 1.0% to $4,556 on Monday as optimism over a potential US-Iran deal weighed on the US Dollar and crude oil. The rebound follows reports of progress in negotiations, including a proposed 60-day ceasefire and the reopening of the Strait of Hormuz.
The US Dollar Index (DXY) retreated toward 99.00, while West Texas Intermediate (WTI) crude fell more than 5%. Analysts noted that a deal could ease inflation concerns tied to rising oil prices, shifting the macro narrative that has pressured bullion.
US President Donald Trump described talks as progressing in an “orderly and constructive manner,” though Iran’s Foreign Ministry stressed a final agreement was not imminent. Markets reacted swiftly to the headlines, with gold benefiting from the dollar’s decline.