Gold prices rose in global markets on Monday as oil prices fell and attention shifted to the Federal Reserve’s interest-rate decision.
Spot gold increased 1% to $4,092.87 per ounce, while US gold futures for August delivery rose 0.7% to $4,098.
The move followed a sharp decline in oil prices after Iran said it would stop its attacks if the United States also avoided further action. The pause reduced immediate concerns about energy supply and inflation.
A weaker US dollar and lower Treasury yields also supported gold. The dollar index fell 0.2%, making gold cheaper for buyers using other currencies. Lower bond yields also reduced the opportunity cost of holding gold, which does not pay interest.
Markets are now focused on the Federal Reserve’s policy meeting on Wednesday. About 34% of market participants were pricing in an interest-rate increase at the meeting, while the probability of a rise in September stood at around 79%.
The Fed’s guidance will be important for gold’s next move. A softer stance on rates could support demand, while a stronger focus on inflation could push yields higher and limit further gains.
In international markets, spot silver gained 1.5% to $59.05 per ounce. Platinum increased 2.7% to $1,631.22, while palladium rose 2.7% to $1,277.47.
The broader rise in precious metals shows that interest-rate expectations are becoming the main market driver as pressure from oil prices eases.
Cora Gold Ltd (LON:CORA), together with its subsidiaries, explores for and develops mineral projects in West Africa. The company primarily explores for gold deposits. Its flagship project is the Sanankoro Gold project located in the Yanfolila Gold Belt, Southern Mali.
