Gold prices moved higher on Monday as easing tensions in the Middle East triggered a sharp decline in oil prices, reducing immediate inflation concerns and improving sentiment toward precious metals. A weaker U.S. dollar also provided additional support by making dollar-denominated assets more attractive to overseas buyers. Reports suggesting a pause in hostilities between the United States and Iran helped drive oil prices more than 4% lower, prompting investors to reassess near-term inflation risks after months of energy-driven price pressures.

Market attention is now firmly focused on the upcoming Federal Reserve policy meeting, where interest rates are widely expected to remain unchanged. However, expectations for additional policy tightening later in the year continue to influence sentiment, as higher interest rates typically reduce the appeal of non-yielding assets such as gold. Meanwhile, the broader precious metals complex also strengthened, with silver, platinum, and palladium all posting solid gains as investors responded to the improving risk environment while continuing to monitor geopolitical developments and the outlook for monetary policy.