Gold prices rose more than 1% on Monday after a pause in fighting in the Middle East pushed oil prices lower, easing concerns over inflation and the prospect of interest rates remaining elevated for an extended period.
اضافة اعلان
Spot gold gained 1.3% to $4,103.99 per ounce as of 0058 GMT.
U.S. gold futures for August delivery rose 0.9% to $4,106.10 per ounce.
A senior Iranian official told Reuters on Sunday that Iran would halt its attacks as long as the United States did the same.
Oil prices fell 5% as investors pinned hopes on a diplomatic solution that could ease tensions in the region.
Higher oil prices typically fuel inflation concerns and increase the likelihood of interest rates staying higher for longer. While gold is widely viewed as a hedge against inflation, its appeal tends to diminish when interest rates rise because it does not generate yield.
The decline in the U.S. dollar and yields on the benchmark 10-year U.S. Treasury also provided additional support for gold prices.
The U.S. Federal Reserve is widely expected to leave interest rates unchanged at its policy meeting this week. However, CME Group's FedWatch Tool indicates that traders still see an 80% probability of a rate hike in September.
Among other precious metals:
Spot silver climbed 2.7% to $59.74 per ounce.
Platinum gained 2% to $1,619.75 per ounce.
Palladium jumped 2.3% to $1,271.93 per ounce.
