ING analysts Warren Patterson and Ewa Manthey said gold rose on Monday after a
sharp drop in oil—following a pause in US–Iran hostilities—eased inflation
worries and pressured the dollar and US Treasury yields. Lower oil improved the
outlook for non-yielding assets ahead of this week’s Federal Reserve meeting.
Markets are focused on the Fed and upcoming US inflation prints for rate
guidance. If yields remain subdued, gold should find support near current
levels; a hawkish Fed surprise could cap further upside.
