Gold experienced fluctuations in price as ongoing peace talks between the United States and Iran in Switzerland showed early signs of progress. Bullion was largely unchanged at around $4,155 an ounce after a third consecutive daily decline on Friday. This initial dip followed a threat issued by US President Donald Trump against Iran, which temporarily raised tensions during the high-level negotiations aimed at resolving the war that has impacted global markets.
Despite an initial report from Iranian media suggesting a halt to talks due to Trump's warning, discussions continued into the early hours of Monday. Mediating nations, Qatar and Pakistan, later issued a joint statement. They indicated that encouraging progress had been made in the first round of negotiations, and a roadmap for a final deal within 60 days was agreed upon.
Following these announcements, gold rebounded significantly. It climbed as much as 1.6% to top $4,220 an ounce, effectively erasing the losses from the previous week. By 10:00 a.m. in Singapore, gold was up 0.8% at $4,189.23 an ounce. Silver also saw gains, rising 2% to $66.21 an ounce after a 4.6% decline last week. The positive sentiment from the talks also led to a drop in Brent crude futures by over 1%, and a communication line was established between Tehran and Washington to secure passage for commercial vessels through the Strait of Hormuz.
