Gold rises on weaker dollar.
Gold prices rose modestly on Monday, supported by a weaker U.S. dollar, as investors weighed a pause in Middle East hostilities while awaiting this week’s U.S. Federal Reserve policy meeting.
Spot gold rose 1.1% to $4,096.36 an ounce by 02:52 ET (06:52 GMT), while U.S. Gold Futures expiring in August gained 0.68% to $4,098.60.
The yellow metal advanced nearly 1% last week amid choppy trading.
Dollar slips, oil slumps post Iran war halt
The US Dollar Index slipped 0.3%, making dollar-priced bullion less expensive for holders of other currencies.
The gains also followed a sharp decline in crude oil prices after the United States and Iran paused military strikes over the weekend.
Following 13 straight nights of U.S. strikes on Iranian targets, President Donald Trump halted the bombing campaign late on Friday to allow diplomatic efforts to proceed.
Oil dives over 6%.
Oil prices fell sharply on Monday after signs of de-escalation between the United States and Iran triggered a broad selloff, wiping out much of last week’s war premium that had briefly pushed Brent crude to the $100-a-barrel mark.
As of 02:11 ET (06:11 GMT), Brent Oil Futures fell 6% to $90.93 a barrel after briefly slipping below the $90 mark earlier in the session, while Crude Oil WTI Futures tumbled 6.1% to $83.83 a barrel.
Brent briefly touched $100 a barrel last week after the conflict spilled beyond the Strait of Hormuz to the Red Sea, threatening crude exports from the Middle East.
But prices retreated after Washington paused its bombing campaign following 13 consecutive nights of strikes, saying it would allow more time for diplomatic efforts after weeks of escalating attacks between the two sides.
The move was quickly reciprocated. An Iranian official told Reuters Tehran would suspend retaliatory attacks as long as the U.S. pause remained in place, although both sides have warned they remain prepared to resume military action if talks break down.
Bitcoin rises above $65k.
Bitcoin climbed above $65,000 levels on Monday, as a halt in U.S.-Iran attacks over the weekend sent oil prices sharply lower and reduced immediate inflation concerns, while investors awaited this week’s Federal Reserve policy meeting.
The world’s largest cryptocurrency last traded 1.5% higher at $65,405.4 by 01:29 ET (05:29 GMT), recovering from last week’s volatility as investors returned to risk assets.
Bitcoin ended the last week largely unchanged amid choppy trading.
US-Iran conflict pause pushes oil lower; Fed awaited
Market sentiment improved after Iran said it would pause retaliatory attacks if Washington refrained from further military action, while the U.S. also halted its bombing campaign, easing fears of a broader regional conflict.
The de-escalation triggered a sharp retreat in oil prices, with Brent crude falling more than 5%, helping to ease concerns that higher energy costs could reignite inflation and force central banks to keep monetary policy tighter for longer.
The softer inflation outlook also weighed on the U.S. dollar, making dollar-denominated assets such as cryptocurrencies more attractive to overseas investors.
Investor attention has now shifted to the Federal Reserve’s policy meeting later this week. The U.S. central bank is widely expected to leave interest rates unchanged on Wednesday, although traders will closely scrutinize Chair Kevin Warsh’s comments for clues on the policy outlook through the remainder of the year.
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