Spot gold prices staged a recovery on Monday, climbing 0.9% to $4,197.41 per ounce.
The move reversed a recent slide that had pushed the precious metal to its lowest level since June 11, signaling a shift in market sentiment despite persistent macroeconomic headwinds.
The rebound coincided with a pullback in crude oil prices, as markets digested signals of de-escalating geopolitical tensions.
While Federal Reserve policy continues to exert downward pressure on non-yielding assets, the immediate relief in risk sentiment provided a bid for gold.
Investors appear to be prioritizing the reduction in geopolitical risk premiums over the near-term implications of monetary policy.
This development marks a notable shift from the previous session’s selling pressure.