Gold Surges Past $4,350 Amid Oil Price Drop, Yet Analysts Warn Recovery Is Incomplete

Gold prices jumped sharply above $4,350 an ounce early Monday, posting gains of more than 3 percent. This represents the strongest single-day advance since February, fueled by reports of an upcoming US-Iran peace accord.

The agreement drove oil below $80 a barrel and eased immediate inflation concerns. Nevertheless, the metal remains below its 200-day moving average near $4,450, leaving the recovery incomplete according to market watchers.

Michele Schneider recommends small long positions above the $4,000 support, while David Morrison cautions that any delay in Friday’s signing could retest that level. TD Securities and Société Générale highlight risks from Fed rate expectations and persistent tightness in global oil inventories.