Gold experienced an increase on Monday as oil prices declined following U.S. President Donald Trump’s decision to refrain from launching a new offensive against Iran, aiming for a prompt agreement. This development contributed to a slight alleviation of worries regarding inflation and rising interest rates. Spot gold was up 0.7% at $4,067.06 per ounce, as of 0023. U.S. gold futures increased by 0.9%, reaching a price of $4,065.60.

Trump stated late on Saturday on his Truth Social platform that Iran and other Middle Eastern nations had requested time to finalise a deal that would result in “the Immediate, Complete and Total” reopening of the Strait of Hormuz and “an end to Iran’s nuclear threat”. Oil prices experienced a decline exceeding $5 per barrel at the opening on Monday. Gold has faced downward pressure since the onset of the U.S.-Iran conflict, as an inflationary surge driven by war may lead central banks to increase interest rates. Although bullion is traditionally viewed as a hedge against inflation, its appeal tends to diminish in a high-interest-rate environment due to the absence of interest yield.

Three Federal Reserve officials who dissented at last week’s policy meeting in favour of an interest rate hike expressed concern on Friday that without an immediate increase in short-term borrowing costs, inflation will remain above the Fed’s 2% target, a level it has exceeded for over five years. Market participants will direct their attention to a series of U.S. jobs reports scheduled for release this week, encompassing job openings data, the ADP employment report, weekly jobless claims, and the nonfarm payrolls report.

Spot silver gained 0.7% to $58.02 per ounce, platinum climbed 0.7% to $1,653.78, and palladium firmed 1.5% to $1,293.00. Russia’s Norilsk Nickel, the world’s largest palladium producer, reported on Friday a significant increase in its revenue and net profit for the first six months.