Gold climbs above $4,100 as US-Iran ceasefire lowers oil

Gold prices rose sharply on Monday, July 27, 2026, as a weekend pause in hostilities between the United States and Iran sent oil prices tumbling, easing inflation fears and shifting investor focus to an upcoming Federal Reserve policy decision. The precious metal climbed more than 1%, with spot prices moving above $4,100 per ounce, while U.S. gold futures also posted gains.

The rally was driven by a significant drop in crude oil prices, with Brent crude falling as much as 9.5% after both Washington and Tehran refrained from launching new attacks for several consecutive nights. A senior Iranian official said on Sunday that Iran would halt its attacks as long as the U.S. did the same. This de-escalation followed discussions between Iranian and Omani officials over the weekend regarding safe navigation through the critical Strait of Hormuz shipping corridor. The lull in fighting reduced fears of prolonged energy supply disruptions that had pushed oil above $100 a barrel last week.

Lower energy prices typically ease broader inflation pressures, which in turn reduces market expectations for aggressive central bank interest rate hikes. Since gold does not yield interest, it becomes...