Gold Rebounds as Iran Deal Hopes Offset Pressure From Stronger Dollar and Rising Yields

Gold prices rebounded on Monday, recovering part of last week’s steep losses as investors assessed reports suggesting potential progress in negotiations involving Iran’s nuclear program and US sanctions policy.

The precious metal traded above $4,560 an ounce after suffering a nearly 4% weekly decline, supported by renewed demand for safe-haven assets amid speculation surrounding a possible geopolitical breakthrough between Washington and Tehran.

According to unconfirmed reports circulating in global markets, the United States could ease sanctions on Iranian oil exports while Iran may agree to a long-term freeze of its nuclear activities. The developments come as President Donald Trump continues to pressure Tehran to move quickly toward a broader agreement.

The rebound in gold follows a volatile week for global commodities and financial markets, where stronger-than-expected US inflation data shifted investor expectations around monetary policy.

Recent inflation readings fueled expectations that the Federal Reserve may keep interest rates elevated for longer, with some traders even beginning to price in the possibility of an additional rate increase before the end of the year.

Higher Treasury yields and a stronger US dollar had weighed heavily on bullion prices in recent sessions, reducing the appeal of non-yielding assets such as gold.

Market participants now remain focused on two parallel themes shaping global risk sentiment: the trajectory of US monetary policy and geopolitical developments involving Iran and the broader Middle East.

Analysts note that while easing geopolitical tensions could reduce immediate safe-haven demand, uncertainty surrounding inflation, interest rates, and global energy markets may continue to support gold prices over the medium term.