Gold Rises as US-Iran Deal Prospects Ease Inflation Worries

Gold prices advanced on Monday, rising as much as 1.6% to around $4,580 an ounce, erasing last week's modest decline. The move came as reports indicated the US and Iran are making progress toward a deal that would reopen the Strait of Hormuz, a critical chokepoint for global oil shipments.

For precious metals traders, the development is significant because it directly addresses one of the key drivers of recent inflation fears. A reopening of the Strait of Hormuz would likely ease supply constraints in the oil market, reducing upward pressure on energy prices and, by extension, inflation expectations. Lower inflation expectations typically reduce the urgency for central banks to maintain aggressive monetary policy, which can support gold as a store of value. Live gold prices and charts on NowPrice show how the market is reacting to these geopolitical developments in real time.

Looking ahead, traders will focus on the final details of the agreement, which US officials said could take several days to finalize. President Donald Trump stated on social media that he will not 'rush' into a deal, suggesting some lingering uncertainty. Any breakdown in talks could reverse gold's gains, while a confirmed agreement may further ease inflation concerns and cap gold's upside. Key levels to watch include the $4,500 support and the $4,600 resistance zone.