Gold Holds Above $4000 as Hormuz Diplomacy Eases Crude Ahead of Fed Decision

Spot gold and silver prices rose in late U.S. trading on Monday, recovering from last week’s sharp losses. Declining crude prices eased inflation worries and revived buying interest in precious metals ahead of the Federal Reserve’s policy decision. Diplomatic moves involving Iran and regional powers trimmed the geopolitical premium in energy markets, though expectations of further Fed tightening capped the rebound.

Gold climbed back above $4,000 an ounce while silver held above $54. Markets focused on a possible October Fed pause followed by additional rate hikes before year-end. Tuesday brings durable goods orders and consumer confidence data, with the FOMC announcement set for Wednesday at 2 p.m. EDT.

Oil prices retreated, with Brent settling at $115.81 per barrel, down 0.8%, and WTI near $102. Renewed talks by Saudi Arabia, Turkey and Pakistan with Iranian officials helped reduce supply-risk fears in the Strait of Hormuz. U.S. and European equity markets closed higher on lower oil prices and solid corporate earnings.