Gold Hits $4,000 as Iran Talks and Fed Decision Loom
Gold prices surged past $4,000 per ounce on Monday, as investors anxiously await the outcome of U.S.-Iran peace talks and signals from the Federal Reserve on potential interest rate cuts [185476]. The jump reflects growing uncertainty in global markets, with traders turning to safe-haven assets amid diplomatic developments in the Middle East and the central bank’s next policy meeting [185476].
The precious metal’s climb comes as the national average price for a gallon of regular gas in the United States fell to $3.86, according to the American Automobile Association (AAA) [185421]. Gas prices had spiked after the U.S.-Iran war began in February, pushing the national average well above $4 per gallon, but have eased following peace talks and a ceasefire announced by President Donald Trump last week [185421].
President Trump on Monday demanded that gasoline retailers immediately lower prices to around $2.50 per gallon, accusing them of overcharging consumers [185421]. In a post on his social media platform Truth Social, Trump wrote that retailers must stop "gauging"—a likely misspelling of "gouging"—warning that "big problems lie ahead" if they do not comply [185421]. He also criticized California for its high gasoline taxes, which are set to rise from 61.4 cents per gallon to 63.4 cents per gallon on July 1 [185421]. California and Hawaii have the highest prices, at $5.45 and $5.49 per gallon, respectively [185421].
Chevron’s finance chief, Eimear Bonner, told CNBC on Thursday that energy providers are working to bring prices down, but noted that reductions take time [185421]. "There is a lag between oil prices and reductions in oil prices, and when that shows up at the pump," Bonner said, adding that prices should fall "as things continue to normalize" [185421].