Gold prices edged toward $5,000 per ounce on Monday, as easing energy costs and a modest pullback in the US dollar offset continued safe-haven demand driven by the conflict in the Middle East. The metal had previously come under pressure from a sharp rise in Treasury yields, but the market is now showing signs of stabilizing after US Treasury Secretary Scott Bessent indicated that Iranian tankers are being allowed to pass through the Strait of Hormuz.
This development helped push West Texas Intermediate crude back toward $95 per barrel, supporting a rebound in global equity markets and contributing to a decline in the yield on the US 10-year Treasury note. Gold’s safe-haven appeal remains strong as the US-Israeli war with Iran enters its third week, but the metal faces a technical headwind from the Federal Reserve, which is widely expected to maintain a restrictive policy stance at its meeting this week.
Investors are also closely watching reports of a possible multinational coalition to escort commercial shipping in the region, as any signs of de-escalation could reduce the geopolitical risk premium embedded in gold prices.
