As investors evaluated the likelihood of advancement in peace talks between the United States and Iran, gold prices increased by more than 1% on Monday, bolstered by a declining U.S. dollar and lower oil prices.
U.S. gold futures for June delivery rose 1.1% to $4,572.90 per ounce as of 00:45 GMT, while spot gold was up 1.4% at $4,570.88 per ounce.
For holders of other currencies, the dollar-denominated precious metal became less expensive due to the dollar’s depreciation.
After excitement had increased the day before, U.S. President Donald Trump indicated on Sunday that his administration had tempered hopes of an impending breakthrough in the three-month-long conflict by telling his representatives not to hurry into any agreement with Iran.
Additionally, Trump claimed on Sunday that Washington and Tehran had finished “a substantial amount of negotiation” on a memorandum of understanding for a peace deal that would allow the Strait of Hormuz to reopen.
Despite ongoing differences over important issues, anticipation that the US and Iran were getting closer to a peace deal caused oil prices to drop to their lowest points in two weeks on Monday.
Spot silver increased 3.9% to $78.42 per ounce, platinum increased 1.9% to $1,959.85 per ounce, and palladium increased 1.9% to $1,373.25 per ounce among other precious metals.
