Gold surged past $4,100 an ounce on Monday as a temporary halt to U.S.-Iran hostilities sent oil prices tumbling and reshaped risk appetite across commodity markets.
Spot gold rose as much as 1.6% before easing, while U.S. gold futures for August delivery gained 0.9% to $4,106.10. Silver, platinum, and palladium all posted gains of roughly 2% or more. A senior Iranian official told Reuters on Sunday that Iran would halt attacks as long as Washington reciprocated, prompting investors to bet on a diplomatic resolution. Brent crude fell as much as 9.5%, with the dollar index also slipping.
Attention now turns to the Federal Reserve's rate decision on Wednesday, where markets largely expect no change. The World Gold Council has pointed to rising global debt as the structural driver behind gold's long-term rally, even as prices have shed more than a fifth since U.S. and Israeli strikes on Iran in late February.