Gold edges higher near $4,200 as traders weigh energy truce, Mideast risks Roushni Nair Sun, October 11, 2026 at 9:47 PM EDT 3 min read GC=F +0.32% SI=F +0.48% PL=F +0.94% PA=F +1.10% CL=F -1.89% Investing.com -- Gold prices edged higher on Monday as traders assessed U.S. President Donald Trump's claim of an immediate energy ceasefire between Russia and Ukraine against renewed attacks in the Middle East that threatened to intensify inflation pressures.
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At 20:30 ET (00:30 GMT), XAU/USD rose 0.3% to $4,206.86 an ounce after gaining 1.3% last week, while XAG/USD advanced 0.6% to $60.99. Platinum and palladium also moved higher. Benchmark Brent crude fell 1.2%.
Trump said an energy truce between Russia and Ukraine had taken effect immediately, raising hopes of some relief for global fuel supplies.
He had previously urged Ukrainian President Volodymyr Zelenskyy to halt attacks on Russian oil refineries and said Moscow had agreed to release diesel into global markets, potentially easing concerns over a fuel supply crunch.
However, renewed attacks in the Middle East continued to threaten energy security. Saudi Arabia's main airport, King Khalid International Airport in Riyadh, came under attack from Houthi rebels on Sunday, a day after a strike on the facility killed 12 people and injured more than 300.
The Saturday attack was the deadliest incident in Saudi Arabia since the Iran war began in late February.
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The Houthis described their attacks as retaliation for what they called Saudi aggression, including a strike on the airport in Yemen's capital, Sanaa. The latest violence has raised concerns that the conflict could spread further across the region, potentially pushing energy prices higher and strengthening the case for tighter monetary policy.
Although oil has eased, the precious metal has lost about a fifth of its value since the U.S.-Iran war erupted in late February.
Higher energy costs and the threat of broader inflation have prompted some central banks to raise interest rates, creating a headwind for gold because it does not generate interest income.
ANZ analysts said gold's recent performance has been supported by rising investment demand, with inflows into gold-backed exchange-traded funds reaching a four-year high, according to Bloomberg data.
The analysts linked investor interest to mounting fiscal pressures around the world, particularly concerns about government debt-servicing costs and money supply. Central banks have also continued to increase their gold holdings.
The People's Bank of China added 740,000 ounces to its reserves in September, extending its buying streak to 23 consecutive months.
However, ANZ cautioned that inflation risks could limit further gains if they prompt the Federal Reserve to tighten policy further. The prospect of higher interest rates remains a concern for gold, as yield-bearing assets become more attractive when borrowing costs rise.
Traders will therefore continue to weigh developments in the Russia-Ukraine conflict and Middle East energy flows against the outlook for inflation and monetary policy.
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