Gold climbs above $4,000 as oil prices fall and investors await Fed decision

Spot gold regained the $4,000 per ounce level on Monday, while silver stayed above $54 an ounce, as declining crude oil prices eased inflation concerns and sparked renewed interest in precious metals ahead of the Federal Reserve's policy decision. Diplomatic activity involving Iran, Saudi Arabia, Turkey and Pakistan reduced the immediate geopolitical premium in energy markets, though the broader U.S.-Iran dispute remains unresolved.

"Saudi officials emphasized the importance of reopening diplomatic channels," the report noted.

Brent crude futures settled at $115.81 a barrel, down 0.8%, ending a three-session rise, and WTI traded near $102.00. The softer oil market lowered energy-driven inflation pressure, supporting gold despite lingering expectations of further Fed tightening. Market positioning still focuses on an October pause followed by possible additional rate hikes before year-end.

U.S. equity indexes closed higher, with the Dow Jones up 0.28% at 52,361.58, the S&P 500 gaining 0.70% to 7,676.77 and the Nasdaq rising 0.82% to 26,169.38. European markets also posted gains, led by stronger corporate results and improved business sentiment, while the energy sector slipped modestly as oil prices retreated.

Investors will watch Tuesday’s durable goods orders, consumer confidence and new-home sales data, and Wednesday’s Fed rate decision and Chair Kevin Warsh’s news conference for clues on future monetary policy. Technical analysis shows gold bulls targeting the $4,032-$4,075 resistance zone, with downside support near $3,946, while silver bulls aim for the $54.53-$55.77 band, with support around $53.46.