Gold gains on pause in US-Iran fighting; Fed decision looms

Gold prices rose on Monday as a temporary halt in hostilities between the United States and Iran over the weekend reduced immediate inflation fears, while investors turned their attention to the upcoming Federal Reserve meeting. The precious metal climbed near $4,050 per ounce, according to market reports, as geopolitical tensions eased and oil prices fell by 4%. The pause in fighting between the two nations curbed the risk of a sudden spike in inflation, which had been supporting gold as a hedge. Meanwhile, equity markets showed mixed performance, with some indices diverging from the commodity's upward trend. The Fed's policy decision, expected later this week, now looms as the next major catalyst for gold traders. Analysts suggest that any signals on interest rate cuts or economic outlook from the central bank could further influence gold's direction. The recent developments mark a shift from earlier weeks when escalating conflict in the Middle East had driven safe-haven demand for gold. With the immediate military standoff on hold, market participants are recalibrating their positions ahead of the Fed's announcement.