Gold Rebounds from One-Week Low as Progress in US-Iran Talks Boosts Market Sentiment
- Gold prices recovered after falling to a one-week low.
- Progress in US-Iran peace talks eased market concerns and pushed oil prices lower.
- Expectations of higher US interest rates continued to limit gains in the precious metal.
Gold prices edged higher on Monday after recovering from their lowest level in more than a week, supported by signs of progress in diplomatic talks between the United States and Iran. The development helped ease geopolitical tensions and weighed on oil prices, providing support for bullion markets.
Spot gold rose 0.4% to $4,176.34 per ounce after touching its weakest level since June 11 during the previous session. Meanwhile, US gold futures for August delivery slipped 1.2% to $4,194.40 per ounce.
Also Read:
The rebound came after high-level negotiations between US and Iranian officials concluded in Switzerland. According to Iranian officials, the discussions resulted in positive progress, while a joint statement from mediators Pakistan and Qatar said both sides had agreed on a roadmap aimed at reaching a final agreement within 60 days.
Market analysts said the improving diplomatic environment has reduced immediate concerns over regional instability. Edward Meir, an analyst at Marex, noted that the atmosphere surrounding the negotiations had improved significantly compared to earlier stages of the talks, although he cautioned that the situation remains fluid and subject to change.
Following the announcement, Brent crude oil prices fell by more than 1%. Lower oil prices can help ease inflation pressures, although the broader outlook for interest rates continues to influence investor sentiment toward gold.
At the same time, expectations of tighter US monetary policy remained a key factor limiting gold’s upside potential. Investors interpreted recent comments from Federal Reserve Chair Kevin Warsh as a signal that another interest-rate increase could be on the horizon, given ongoing inflation concerns.
Currently, nine of the Federal Reserve’s 19 policymakers expect at least one additional rate hike this year. Higher interest rates generally reduce the appeal of gold because the metal does not generate interest or yield.
Among other precious metals, spot silver gained 1% to $65.53 per ounce, palladium rose 0.6% to $1,265.12, while platinum slipped 0.3% to $1,659.40 per ounce.
Read all the Breaking News Live on pakistantimes.com and Get Latest English News & Updates from Pakistan Times. Follow us on Whatsapp channel for more.
