Gold rose toward $4,300 an ounce on Monday, extending its gains for a third straight session after the United States and Iran reached a peace agreement that would reopen the Strait of Hormuz. The announcement pushed oil prices down to a two-month low, easing inflation concerns and reducing expectations of further interest rate hikes that have been pressuring bullion.
The agreement, which is scheduled to be signed in Switzerland on June 19, is reported to include the lifting of blockades, sanctions relief for Iran, and the dismantling of Tehran’s nuclear program.
In monetary policy, the US Federal Reserve will convene its first policy meeting this week under new Chair Kevin Warsh and is widely expected to leave interest rates unchanged. The Reserve Bank of Australia is also anticipated to keep its policy steady, while the Bank of Japan is expected to raise rates in a bid to support the yen.