Key Takeaways

• Gold bounces: Spot gold rose 1.1% to $4,205.05 per ounce, while gold futures climbed 1.2% to $4,223.42 — snapping three straight sessions of losses.
• Coming off a tough week: Bullion slipped 1.4% last week following the Fed’s hawkish signals.
• Iran progress supports: FM Araghchi’s “major progress” claim from Switzerland talks eased fears of a prolonged energy supply disruption.
• Qatar and Pakistan’s roadmap: Mediators confirmed negotiators agreed on a path toward a broader agreement; technical talks continue through the week.
• Lower oil eases inflation fears: Crude’s retreat tempered expectations that energy-driven price pressures could force a more aggressive Fed tightening cycle.
• Higher-for-longer rates cap upside: Markets continue digesting last week’s hawkish Fed meeting, keeping gold’s gains in check.
• ING’s view: “While geopolitical risks should continue to provide underlying support, a higher-for-longer US rate environment may limit near-term upside.”
• Dollar near 13-month high: The DXY held firm near its strongest level since May 2025, making gold more expensive for overseas buyers.
• PCE data ahead: The Fed’s preferred inflation gauge is due later this week — a key input for rate path expectations.
• Silver surges 2.8%: To $66.70 per ounce — outperforming gold significantly.
• Platinum gains 1.6%: To $1,694.60 per ounce.
• Copper edges up: LME copper rose 0.8% to $13,700.33 per ton; U.S. copper futures were flat.

Gold prices climbed on Monday as investors monitored developments in U.S.-Iran negotiations in Switzerland and assessed the outlook for U.S. monetary policy following the Federal Reserve’s hawkish signals last week.

Spot gold rose 1.1% to $4,205.05 an ounce by 02:48 ET (06:48 GMT), while U.S. gold futures climbed 1.2% to $4,223.42.

Bullion slipped 1.4% last week and is coming off three straight sessions of losses.

Iran Talks Progress Eases Energy Inflation Fears

The precious metal found support as Iranian officials reported progress in talks with the United States, helping ease fears of a prolonged disruption to global energy supplies and weighing on crude oil prices.

Iranian Foreign Minister Abbas Araghchi said “major progress” had been made during the quadrilateral talks in Switzerland, while mediators from Qatar and Pakistan said negotiators had agreed on a roadmap toward a broader agreement. Technical discussions are set to continue through the week.

Lower oil prices helped reduce inflation concerns, providing support to bullion by tempering expectations that energy-driven price pressures could force the Federal Reserve into a more aggressive tightening cycle.

Brent crude pared earlier gains on Monday after signs of diplomatic progress emerged, despite ongoing tensions surrounding the Strait of Hormuz.

Dollar Strength and Rate Fears Limit Upside

Still, gains in gold were limited by expectations that U.S. interest rates could remain elevated.

Markets continue to digest last week’s Federal Reserve meeting, where policymakers maintained a hawkish bias and kept the possibility of further rate increases on the table amid persistent inflation risks.

“While geopolitical risks should continue to provide underlying support, a higher-for-longer US rate environment may limit near-term upside,” ING analysts said in a research note.

The U.S. Dollar Index held firm near a 13-month high hit last week.

Investors are now awaiting a key reading of the U.S. Personal Consumption Expenditures price index later this week for fresh clues on the path of monetary policy.

Among other precious metals, silver prices rose 2.8% to $66.70 per ounce, while platinum gained 1.6% to $1,694.60 per ounce.

Benchmark copper futures on the London Metal Exchange edged up 0.8% to $13,700.33 a ton, while U.S. copper futures traded flat at $6.35 a pound.