XAU/USD rises after President Trump pauses military action against Iran, fueling optimism over potential nuclear negotiations.
Gold prices (XAU/USD) rebounded to $4,060 in early Asian trading Monday after US President Donald Trump suspended planned strikes on Iran. The move followed reports of progress toward a nuclear deal and the reopening of the Strait of Hormuz, according to statements on Trump’s social media platform.
The precious metal had faced pressure last week as the Federal Reserve held interest rates steady at 3.50%-3.75% and reaffirmed its inflation-fighting stance. However, lingering Middle East tensions and mixed signals from Iranian officials—who denied requesting a pause—kept uncertainty elevated.
Traders are monitoring US-Iran developments closely, as further diplomatic progress could support gold. Conversely, escalating tensions may lift crude oil prices and reinforce expectations for prolonged high interest rates, capping gains.