Gold prices rose by more than 1% during trading on Monday, supported by a weaker dollar and lower oil prices, while investors assessed the prospects for progress in peace negotiations between the United States and Iran.
Spot gold rose 1.08% to $4,557.58 an ounce, while U.S. gold futures for June delivery climbed 0.9% to $4,564.10 an ounce.
The rise in the precious metal came as the dollar weakened, making gold priced in US dollars less expensive for holders of other currencies.
US President Donald Trump said on Sunday that he had instructed his representatives not to rush into any agreement with Iran, after his administration lowered expectations of an imminent breakthrough in the three-month-old war, following a wave of optimism in the markets the previous day.
Trump had also stated that Washington and Tehran had accomplished a great deal of negotiation on a memorandum of understanding for a peace agreement that could lead to the reopening of the Strait of Hormuz.
Meanwhile, oil prices fell to their lowest level in two weeks amid growing optimism that a peace agreement could be reached, despite continued disagreements over a number of key issues.
As for other precious metals, silver jumped 3.9% in spot trading to $78.42 an ounce, while platinum rose 1.9% to $1,959.85 an ounce, and palladium climbed 1.9% to $1,373.25 an ounce.
