Gold ETFs Surge as Ceasefire Hopes Lift Market Optimism

Gold prices rallied more than 1% on Monday, buoyed by renewed investor appetite for gold ETFs after President Trump indicated that the United States and Iran were close to finalizing a memorandum of understanding to reopen the Strait of Hormuz. The prospect of easing geopolitical tensions weighed on the dollar and reduced oil prices, improving the broader inflation outlook and sending gold to its highest level in weeks.

The move higher in gold comes as gold ETF holdings have strengthened in recent weeks, signaling a return of investor demand. The yellow metal has gained roughly 38% over the past year and remains well supported by central bank buying trends that have persisted since 2022. Lower oil prices ease inflationary pressures, which in turn reduces the urgency for the Federal Reserve to maintain an aggressive rate stance—a scenario historically favorable for gold. For traders tracking the latest levels, NowPrice offers real-time gold quotes to monitor price action as the situation develops.

Looking ahead, market participants will focus on the actual signing of the US-Iran agreement and any further details regarding the timeline for reopening the Strait of Hormuz. Additionally, upcoming US economic data, including inflation readings and Fed commentary, will be key in determining whether gold can sustain its upward momentum. A continued decline in the dollar index could provide further support for the precious metal.