August gold futures recovered from a 1.9% drop at open as diplomatic talks eased geopolitical tensions, lifting prices above $4,200.
Gold August futures opened at $4,163.90 per troy ounce, down 1.9% from Friday’s close of $4,245.90, before rebounding to $4,224.50 in early trading. The initial decline reversed as progress in Iran-U.S. negotiations reduced geopolitical risks, with Tehran reporting an agreed 60-day roadmap for a final deal.
Prices had fallen 2.5% week-over-week but stabilized near levels last seen at Friday’s close. Market focus now shifts to this week’s Personal Consumption Expenditures price index, which could influence Fed rate expectations. Higher rates typically weigh on gold demand.
Futures for the S&P 500, Nasdaq, and Dow remained muted as investors balanced geopolitical developments with AI-driven market sentiment.