Why did gold prices rise more than 1% on Monday, according to the news?

Gold prices rose more than 1% on Monday because a pause in U.S.-Iran hostilities lowered oil prices—reducing inflation concerns—and weakened the U.S. dollar index by 0.3%, making gold cheaper for holders of other currencies; as Tim Waterer of KCM Trade stated, 'Gold is a clear beneficiary today of the dual price action in oil and the U.S. dollar, both of which have dropped on de-escalation hopes between the U.S. and Iran. Lower oil is easing inflation concerns.'

What is the current market expectation for the Federal Reserve's upcoming policy decision, and how does it relate to gold's near-term outlook?

Markets widely expect the Federal Reserve to keep interest rates unchanged at its upcoming meeting, though traders are pricing in an ~80% chance of a rate hike in September according to the CME FedWatch Tool; this uncertainty—combined with gold's sensitivity to oil-driven inflation concerns and geopolitical volatility—means gold's immediate path remains tied to oil prices and headlines, as Waterer noted: 'Longer term, I remain constructively bullish on gold. Gold's immediate fate is closely tied to where oil prices head from here and the path higher is likely to remain volatile and heavily influenced by geopolitical headlines until a more durable peace takes hold.'

Gold Gains on Pause in US-Iran Fighting; Fed Decision Looms

Jul 26, 2026

Spot gold rose over 1% to $4,110 per ounce amid de-escalation hopes between the U.S. and Iran, while oil prices dropped more than 4%. Investors await the Federal Reserve's policy decision as precious metals rally.

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