Gold Rises 1.6% as US-Iran Talks Progress, Aim for Hormuz Deal
Gold climbed as much as 1.6% to top $4,220 an ounce after US and Iranian negotiators reported progress in talks aimed at securing a peace deal and keeping the Strait of Hormuz open.
Gold prices surged as much as 1.6% to top $4,220 an ounce during US trading on Monday, following reports of progress in US-Iran negotiations aimed at reaching a peace deal within two months and formally ending a conflict that has roiled global markets.
The rally came after US Vice President JD Vance described the weekend talks in Switzerland as "very, very good," echoing positive assessments from Iranian officials after all-night discussions. The two sides are reportedly working to keep the Strait of Hormuz open, a critical chokepoint for global oil shipments. Bullion pared some gains later in the session but remained elevated as traders weighed the implications of a potential détente.
For gold and precious metals traders, the development is a double-edged sword. On one hand, reduced geopolitical risk typically dampens safe-haven demand for gold. However, any disruption to Hormuz could spike oil prices, fueling inflation and supporting gold as a hedge. Live gold prices and charts on NowPrice show the market reacting to each headline, with volatility expected to persist as talks continue. The precious metal has also been supported by central bank buying and uncertainty over US interest rate policy.
Looking ahead, traders will monitor further statements from both sides and any concrete steps toward a formal agreement. Key levels to watch include the $4,200 support zone and resistance near the recent highs above $4,250. The next round of talks is expected within days, and any breakdown could quickly reverse the current risk-on sentiment.