25.05.2026 08:20
Gold prices rose more than 1% on the first trading day of the week. A weakening dollar and falling oil prices supported markets, while investors continued to assess the potential impact of a peace deal between the US and Iran. Spot gold climbed to $4,559, while oil prices fell to their lowest level in two weeks. As Trump's messages of a deal with Iran were closely watched by markets, silver, platinum, and palladium prices also rose.
Gold prices rose more than 1% on the first trading day of the week. While a weakening dollar and falling oil prices supported markets, investors continued to assess the potential impact of a possible peace agreement between the US and Iran on global markets.
DOLLAR DECLINE SUPPORTED GOLD
Spot gold rose 1.1% to $4,559.29 per ounce, while US gold futures traded 0.8% higher at $4,560.30.
The decline in the dollar index made gold, which is priced in dollars, more attractive for investors using other currencies. Tim Waterer, chief market analyst at KCM Trade, said markets were pricing in expectations of a potential deal with Iran.
Waterer stated, "Trump has increased market expectations of a deal with Iran. This has raised expectations that the Strait of Hormuz could reopen. While this prospect puts pressure on oil prices, it has supported gold in terms of the inflation outlook."
TRUMP'S STATEMENT ON IRAN
US President Donald Trump said on Sunday that he told his representatives not to rush into a potential deal with Iran. The Trump administration kept expectations of near-term progress in the three-month-long war low.
The day before, Trump stated that Washington and Tehran had largely agreed on a peace deal that would reopen the Strait of Hormuz.
OIL PRICES DECLINED
The strengthening likelihood of a deal between the US and Iran increased selling pressure in the oil market. Oil prices fell to their lowest levels in two weeks on Monday.
The drop in oil prices also lowered global inflation expectations. Experts noted that high oil prices could increase inflation, keeping interest rates high for longer, which puts pressure on gold as it yields no interest.
NEW ERA AT THE FED
Kevin Warsh was sworn in as the new chair of the US Federal Reserve on Friday. Warsh took the helm at the Fed at a time when rising gasoline prices due to the Iran war are boosting inflation and weakening consumer confidence.
SILVER AND PLATINUM ALSO ROSE
The rise in precious metals was not limited to gold. Spot silver rose 2.8% to $77.61, while platinum gained 1.9% to $1,958.35. Palladium prices rose 2.3% to $1,379.31.