Gold Prices Rise Above $4,200 as Russia-Ukraine Energy Truce Eases Oil Concerns

Gold prices climbed on Monday as investors weighed U.S. President Donald Trump’s announcement of an immediate energy ceasefire between Russia and Ukraine against escalating Middle East tensions and persistent inflation risks.

Spot gold (XAU/USD) gained 0.3% to $4,206.86 per ounce at 20:30 ET (00:30 GMT), extending its recovery after rising 1.3% last week. Silver (XAG/USD) advanced 0.6% to $60.99, while platinum and palladium also recorded gains. Meanwhile, Brent crude oil prices declined 1.2%.

Trump announced that Russia and Ukraine had agreed to halt attacks on energy infrastructure, potentially easing pressure on global fuel supplies. The U.S. president previously urged Ukrainian President Volodymyr Zelenskyy to stop targeting Russian oil refineries and indicated that Moscow would release additional diesel into international markets.

However, renewed violence in the Middle East continued to threaten global energy security. Houthi rebels attacked King Khalid International Airport in Riyadh on Sunday, following a Saturday strike that killed 12 people and injured more than 300.

The attacks intensified concerns about a broader regional conflict, particularly as the U.S.-Iran war continues to disrupt energy markets and fuel inflation expectations.

Despite Monday’s gains, gold has declined approximately 20% since the conflict began in late February. Rising energy costs have encouraged some central banks to increase interest rates, reducing the appeal of non-yielding assets such as gold.

Nevertheless, strong institutional investment and central bank purchases continue to provide support for precious metals.

ANZ analysts highlighted growing demand for gold-backed exchange-traded funds, with inflows reaching their highest level in four years, according to Bloomberg data. Concerns over government debt, fiscal instability and expanding money supply have also strengthened investor interest.

China remains a significant buyer, with the People’s Bank of China adding 740,000 ounces of gold to its reserves in September, marking its 23rd consecutive month of purchases.

However, ANZ warned that persistent inflation could encourage the Federal Reserve to maintain or further tighten monetary policy, potentially limiting gold price gains.

Investors will closely monitor Middle East developments, Russia-Ukraine ceasefire negotiations and upcoming monetary policy signals to assess whether gold can sustain its recovery above $4,200.