Precise Investors Editorial Team
Spot gold was up 1.1 per cent at $4,560.09 per ounce
Gold prices rose more than 1 per cent on Monday, supported by a weaker dollar and easing oil prices, as investors weighed prospects of a breakthrough in Iran-U.S. peace negotiations.
Spot gold was up 1.1 per cent at $4,560.09 per ounce, as of 0219 GMT. U.S. gold futures for June delivery added 0.9 per cent to $4,562.10.
Spot silver jumped 3.1% to $77.81 per ounce, platinum advanced 2.1% to $1,963.30, and palladium was up 2.4% at $1,381.82.
The dollar softened, making dollar-priced bullion more affordable for holders of other currencies.
Trump has been raising market hopes for some sort of deal with Iran, which could lead to the reopening of the Strait of Hormuz. That prospect has weighed on oil prices and, by extension, given gold a welcome lift from an inflation perspective, said Tim Waterer, chief market analyst at KCM Trade.
The U.S. president said on Sunday he had instructed his representatives not to rush into any deal with Iran, as his administration played down expectations of an imminent breakthrough in the three-month-old war.
A day earlier, he said Washington and Iran had largely negotiated a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz.
Oil prices hit two-week lows on Monday on optimism that Iran and the U.S. were moving closer towards a peace deal even though both countries remained at odds over key issues.
Oil prices influence inflation expectations. Elevated crude can fuel inflation and keep interest rates higher for longer. While gold is seen as an inflation hedge, higher rates tend to weigh on the non-yielding metal.
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