Gold prices edged higher on Monday, supported by a decline in the U.S. Dollar. The shift followed reports that Iran submitted a new proposal to end its conflict with the United States, reviving hopes for de-escalation in the Middle East.
اضافة اعلان
Market Performance
Spot Gold: Rose 0.4% to $4,726.62 per ounce (as of 04:07 GMT), recovering slightly after a 2.5% loss last week which snapped a four-week winning streak.
U.S. Gold Futures (June): Settled at $4,742.
Silver: Gained 1% to reach $76.45 per ounce.
Platinum: Increased by 0.7% to $2,025.20.
Palladium: Fell 0.2% to $1,493.50.
Geopolitical Influence
The primary driver for the currency and metal markets was a report stating that Iran sent a new proposal to the United States via Pakistani mediators. The proposal focuses on:
Reopening the Strait of Hormuz.
Ending the active two-month war.
Kyle Rodda, senior financial market analyst at Capital.com, noted:
"We are now watching for any progress in the [U.S.-Iran] talks in the coming days; that will be the biggest driver for gold."
Diplomatic Tension
The situation remains volatile. President Donald Trump stated on Sunday that Iran could "call" if they wanted to negotiate, while reiterating that Tehran would never possess a nuclear weapon. This followed a setback on Saturday when the U.S. canceled an envoy trip to Pakistan, even as Iranian Foreign Minister Abbas Araghchi was in Islamabad for discussions with local officials.
Focus on the Federal Reserve
Investors are closely awaiting the Federal Reserve's interest rate decision this Wednesday. Market analysts suggest the Fed's stance will be pivotal:
Supportive for Gold: If the Fed signals a pause due to economic uncertainty.
A Headwind: If the Fed suggests holding rates steady or hiking them to combat the inflationary effects of the ongoing energy crisis.
Source: Reuters
