Gold rises as oil retreats on pause in US-Iran strikes; Fed rate decision in focus
GLD•Gold gains as oil prices ease
Gold rose on Monday as a pause in hostilities between the United States and Iran sent crude oil prices to a one-week low, easing inflation concerns ahead of the U.S. interest rate decision this week.
Spot gold XAU= was up 0.9% at $4,090.79 per ounce by 12:35 p.m. EDT (1635 GMT), while U.S. gold futures GCcv1 for August delivery rose 0.5% to $4,093.00.
The U.S. dollar index /.DXY softened 0.1%, making greenback-priced bullion more affordable for buyers overseas.
Other metals and China gold imports
Meanwhile, China's net gold imports via Hong Kong more than doubled year-on-year in June, but slipped more than 5% from the previous month, data from Hong Kong's Census and Statistics Department showed on Monday.
Among other metals, spot silver XAG= rose 1.3% to $58.94 per ounce, platinum XPT= gained 2.7% to $1,631.42, and palladium XPD= climbed 4.1% to $1,294.75.
Oil, Fed expectations and inflation data in focus
"Primarily what we're seeing is the oil market is down from over $100 last week to $90, and it's driving the interest rate outlook lower," said Bart Melek, global head of commodity strategy at TD Securities.
