27.07.202613:05:56UTC+00Gold Rebounds as Oil Prices Retreat

Gold climbed 1% toward $4,100 an ounce on Monday as easing tensions between the US and Iran drove oil prices sharply lower, tempering inflation worries and reducing expectations that the Federal Reserve will need to tighten monetary policy more aggressively ahead of its meeting later this week. Brent crude pulled back from two-month highs after Washington and Tehran paused hostilities, bolstering hopes that a diplomatic solution could de-escalate the conflict and secure safe passage for shipping through the Strait of Hormuz. Iran signaled it would halt further attacks as long as the US maintains its pause in military operations. Investors now turn their focus to the Fed’s policy decision on Wednesday. Futures markets currently price in about a 30% chance of a rate hike this week and roughly an 80% probability of another increase in September.