XAU/USD rises to $4,179 as easing geopolitical tensions reduce inflation concerns and pressure oil markets.
Gold prices edged up 0.5% to $4,179 on Monday as optimism over US-Iran negotiations dampened oil prices, lowering inflation expectations. The XAU/USD pair recovered from earlier lows amid shifting market sentiment.
Oil’s decline followed reports of constructive talks, easing supply concerns and reducing safe-haven demand for gold. The move contrasts with recent sessions where inflation fears drove commodity volatility.
Markets await further developments in the negotiations, which could extend the downward pressure on energy prices and support non-yielding assets like gold.