Gold prices edged higher on Monday as signs of de-escalating tensions in the Middle East boosted investor sentiment. President Trump told aides he's willing to end the conflict with Iran even if the Strait of Hormuz remains mostly closed, according to market reports. This development eased concerns about potential supply disruptions and central bank rate increases.

Middle East news reports indicated Iran's President Masoud Pezeshkian might consider ending the war if certain conditions are met. OCBC Group Research analysts noted that if geopolitical tensions de-escalate or growth concerns resurface, expectations for Federal Reserve easing could return. In such a scenario, real yields would likely fall, providing support for gold prices.

Spot gold climbed 0.3% to $4,686.07 per ounce as investors recalibrated their positions. The precious metal's movement reflects broader market sentiment about the potential resolution of Middle East conflicts and its impact on oil prices and monetary policy. Traders are closely monitoring diplomatic developments that could influence both regional stability and global economic conditions.