Gold (XAU/USD) price posts modest gains of 0.50% on Monday as talks between the US and Iran began on a positive note, driving Oil prices lower and reducing inflation expectations. At the time of writing, the XAU/USD pair trades at $4,179, after bouncing off daily lows of $4,136.
Silver (XAG/USD) trades around $65.90 at the time of writing on Monday, up 1.69% on the day and snapping a three-day losing streak. The white metal is attracting renewed investor interest as markets assess the implications of diplomatic progress between the United States (US) and Iran.
West Texas Intermediate (WTI) US Oil declines sharply on Monday and trades around $74.50 at the time of writing, down 2.54% on the day.
BNY’s Geoff Yu notes that progress in U.S.–Iran talks and a ceasefire framework for Lebanon have helped Oil markets price a more durable de-escalation, supporting a broader risk-positive environment.
Gold (XAU/USD) edges higher on Monday as traders react to signs of progress in US-Iran negotiations following the first round of direct talks held earlier in the day in Switzerland, with Pakistan and Qatar acting as mediators.
United States (US) Vice President (VP) JD Vance said during the European trading session on Monday that mechanisms have set up to keep the Strait of Hormuz, a vital passage to almost 20% of global energy supply, open, and stop hostilities in Lebanon.