Gold Strengthens as Dollar Weakens Amid Ceasefire Signals
Gold (XAU/USD) strengthened slightly on Monday as the US dollar weakened amid improving market sentiment, as market participants responded to the latest diplomatic signals regarding efforts to end the US-Iran war. At the time of writing, XAU/USD was trading around $4,691, recovering from an intraday low near $4,600.
Gold's gains came as markets assessed the likelihood of easing geopolitical risks. Axios reported that the US and Iran, along with regional mediators, were discussing a potential 45-day ceasefire, citing four US, Israeli, and regional sources familiar with the talks. Reuters separately reported that Washington and Tehran had accepted a two-step deal that could take effect as early as Monday and reopen the Strait of Hormuz.
From Iran, Foreign Ministry spokesman Esmaeil Baghaei said Tehran had formulated a diplomatic response to the US and would announce it in due course. However, the market remains wary of the risk of escalation after US President Donald Trump threatened over the weekend with attacks on power plants and other civilian infrastructure if the Strait of Hormuz is not reopened and no agreement is reached by 8:00 p.m. Eastern Time (ET) on Tuesday. (gn)
Source: Newsmaker.id