Gold prices climbed more than 1% on Monday, supported by falling oil prices and easing inflation concerns, as investors awaited US inflation data and signals regarding the Federal Reserve’s monetary policy outlook.
Spot gold rose 1.6% to $4,129.69 per ounce by 02:20 GMT. US gold futures for December delivery also gained 1.6% to $4,139, following gains of around 5% last week.
Oil prices declined after US President Donald Trump said the likelihood of launching new attacks on Iran was largely ruled out as negotiations continued, easing concerns over potential supply disruptions.
Lower oil prices help reduce inflationary pressures and expectations that interest rates will remain elevated for longer, lowering the opportunity cost of holding non-yielding gold. A weaker US dollar also made the precious metal less expensive for holders of other currencies.
Among other precious metals, silver rose 2.8% to $53.31 per ounce, platinum gained 1.6% to $1,556.14, and palladium advanced 2.1% to $1,044.28.
Source: Reuters
