The price of bullion hovered around $4,190 an ounce, having increased more than 2% over the past week.
Weaker US employment data, alongside declining energy costs, prompted traders to reconsider their predictions on tightening monetary policy. Oil prices fell on Monday as additional tankers navigated through the Strait of Hormuz and OPEC+ indicated an increase in supplies.
Crude prices, a significant factor in inflation at the onset of the US-Iran conflict, experienced their most substantial quarterly decline since 2020 as energy movement through the strait surged following an interim peace agreement between the US and Iran. This has alleviated some of the inflationary pressures affecting non-yielding gold, which typically performs better when borrowing costs are lower.
Also Read:
Oil prices decline as Hormuz flows continue, OPEC+ indicates higher supplies
In addition, US President Donald Trump and his associates have intensified efforts to reshape the Fed following the Supreme Court’s recent decision to block an attempt to dismiss Governor Lisa Cook.
Key officials and external supporters are actively investigating methods to remove members of the central bank’s Board of Governors in Washington to create opportunities for more of the president’s nominees, according to sources familiar with the discussions.
Repeated challenges to the Fed’s autonomy by the Trump administration significantly fueled bullion’s surge during the latter months of 2025, linking to the so-called ‘debasement trade’ — an investment strategy focused on inflation and rising debt levels in developed nations.
Spot gold increased by 0.3% to $4,188.32 an ounce at 7:18 a.m. in Singapore. Silver rose 1.1% to $63.12 an ounce. Both platinum and palladium also saw gains. The Bloomberg Dollar Spot Index, which measures the US currency, remained relatively stable after a 0.3% drop last week.
