Gold traded above $4,510 per ounce on Monday as the market balanced tentative hopes for a diplomatic resolution against the persistent inflationary risks of a prolonged energy shock. While President Trump cited serious discussions with a more reasonable regime in Iran, Bullion remains sensitive to his concurrent threat to obliterate Iranian oil and power infrastructure if a deal is not reached shortly. Despite these headlines, gold is down more than 15% from its March peak as Brent crude climbing above $115 reinforces expectations that higher energy costs will limit the Federal Reserve's room for aggressive rate cuts. Furthermore a firmer US dollar and a rebound in Treasuries have dampened the appeal of non-yielding assets even as Houthi attacks in the Red Sea sustain a high geopolitical risk premium. As investors weigh El-Erian's warnings of limited policy flexibility the metal's trajectory remains tethered to the outcome of these high-stakes negotiations.