Gold advances as lower oil prices reduce concerns over inflation and additional interest rate hikes.

Gold moved higher as declining oil prices and a halt in U.S.-Iran military strikes helped ease concerns over inflation and further interest rate increases. Investors are now closely watching upcoming policy meetings from the Federal Reserve, Bank of England, and Bank of Japan, which could drive the next major market moves. Meanwhile, Iran stated that it would not launch retaliatory attacks as long as the pause in U.S. bombing operations remains in place.

Gold prices extended their advance for a second straight session on Monday, with XAU/USD trading near $4,103 per ounce during Asian trading hours. The precious metal benefited from a steep decline in oil prices, which helped ease concerns about inflationary pressures and reduced expectations of further interest rate hikes after the United States and Iran paused military hostilities over the weekend.

Market participants are now turning their focus to a packed economic calendar that could drive significant volatility across financial markets. The week features key policy meetings from the Federal Reserve, Bank of England, and Bank of Japan, along with major economic releases, including US GDP growth, US Core PCE inflation, and CPI data from both the Eurozone and Australia. These reports are expected to play a crucial role in shaping global interest-rate expectations.

Geopolitical tensions also showed signs of easing after Washington suspended its two-week bombing campaign against Iran late Friday. In response, Tehran refrained from launching retaliatory attacks against US allies in the Middle East for a second consecutive night. US Ambassador to the United Nations Mike Waltz stated that although American forces remain on high alert, President Donald Trump is allowing time for diplomatic efforts and possible negotiations.

Supporting this view, Reuters cited a senior Iranian official who reiterated Tehran’s “attack-for-attack” policy, indicating that Iran will continue to withhold military action as long as US strikes remain suspended. This temporary de-escalation has improved market sentiment and reduced demand for traditional safe-haven assets, although gold continues to find support amid lingering geopolitical uncertainty.