09:02 AM EDT, 07/20/2026 (MT Newswires) -- Gold was steady early Monday, holding above $4,000 despite a stronger US dollar as oil prices eased.

Gold for August delivery was last seen down $3.60 to $4,015.20 per ounce.

Gold prices have been buffeted by the rise in oil prices that have followed the US war on Iran, raising worries central banks will need to raise interest rates due to energy inflation. However reports on Monday said talks between the two combatants may resume, easing oil futures and lowering inflation worries.

"The counterintuitive decline reflects rising bets that the Fed may need to hike rates to contain oil-driven inflation, lifting the opportunity cost of holding bullion," Saxo Bank noted,

The dollar traded up early, with the ICE dollar index last seen up 0.11 points to 100.88. Treasury yields also moved higher, with the yield on the US two-year note last seen up 1.7 basis points to 4.2%, while the 10-year note was paying 4.566%, up 1.7 points.