Gold (XAU/USD) edges higher on Monday as traders react to signs of progress in US-Iran negotiations following the first round of direct talks held earlier in the day in Switzerland, with Pakistan and Qatar acting as mediators.
At the time of writing, XAU/USD is trading around $4,208, up nearly 1.3% on the day
US Vice President JD Vance said negotiators had laid “a very good foundation for a successful final deal” and added that the Strait of Hormuz is open. Earlier, Qatar and Pakistan said in a joint statement that Washington and Tehran had agreed on a roadmap to reach a final deal within 60 days. The two sides also agreed to continue technical-level talks for the remainder of the week.
However, traders seem hesitant to chase XAU/USD higher as they await additional clarity from upcoming negotiations. Meanwhile, hawkish expectations from the Federal Reserve (Fed) remain a headwind for the precious metal. Easing tensions in the Middle East have pushed Oil prices back toward pre-war levels, easing concerns over a prolonged energy-driven inflation shock.