Gold Edges Higher on Iran Talks Optimism, Weaker Oil

Gold (XAU/USD) posted modest gains of 0.50% on Monday, supported by a decline in oil prices following constructive talks between the US and Iran. The positive diplomatic tone eased supply concerns, lowering crude prices and dampening inflation expectations, which in turn boosted demand for the non-yielding metal.

At the time of writing, the XAU/USD pair trades at $4,179, having recovered from its intraday lows. The move reflects a shift in market sentiment as falling energy costs reduce the need for aggressive monetary tightening, supporting gold's appeal as a hedge.

Traders will continue to monitor developments in the Iran negotiations and broader commodity price moves for further directional cues in the precious metal.