Gold hovered near $4,030 an ounce on Monday, with prices largely steady as investors weighed support from a weaker US dollar against softer safe-haven demand amid easing geopolitical tensions. Oil prices slumped as growing optimism over a possible US-Iran agreement tempered inflation concerns and reduced expectations that interest rates would stay higher for longer.
US President Donald Trump said new talks with Iran would begin on Monday after he decided against launching a fresh attack, though Iran denied that any negotiations with Washington were taking place. Gold also drew support from a declining US dollar, which fell to its lowest level since mid-June after authorities intervened in the foreign exchange market to bolster the yen.
Market participants now turn their attention to a series of US labor market indicators, culminating in Friday’s nonfarm payrolls report, for further guidance on the Federal Reserve’s policy outlook.
