Gold Prices Rise as Oil Falls on Reported U.S.-Iran Talks
Spot gold reached $4,559.07 per ounce and June U.S. gold futures rose 0.8 percent. The move followed a reported memorandum of understanding between Washington and Tehran that softened oil prices.
jpost.comSpot gold climbed to $4,559.07 per ounce early Monday, according to Reuters. U.S. gold futures for June delivery rose 0.8 percent to $4,559.80. The price increase followed statements that Washington and Tehran had largely negotiated a memorandum of understanding. Brent crude slipped below $100 per barrel after the reports, according to Investing.com.
Lower oil prices reduced inflation expectations, supporting gold demand. Tim Waterer, chief market analyst at KCM Trade, told CNBC that the statements raised hopes for a Strait of Hormuz reopening, which weighed on oil prices and gave gold a lift from an inflation perspective. Gold's movement reflected cheaper energy prospects rather than traditional safe-haven buying.
Officials later indicated the memorandum does not yet include specifics on Hormuz management, according to Reuters. A U.S. official stated there was no rush to finalize terms.
Key Facts
Story Timeline
3 events- Weekend
Officials stated Washington and Tehran had largely negotiated a memorandum of understanding.
1 sourceBenzinga - Sunday
Officials indicated there was no rush to finalize the agreement.
1 sourceBenzinga - Monday
Spot gold reached $4,559.07 per ounce and June futures rose 0.8 percent.
1 sourceBenzinga
Potential Impact
- 01
Traders may adjust positions if oil prices remain lower.
- 02
Further details on Hormuz management could alter energy price forecasts.
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