Gold prices gained over 1% on Monday, supported by a weaker dollar and lower oil prices, as prospects of a breakthrough in the US-Iran peace talks eased inflation concerns.
Spot prices rallied 1.4% to $4,570.88 per ounce, while US gold futures for June delivery gained 1.1% to $4,572.90. Spot price jumped 3.9% to $78.42 per ounce.
In other commodities, platinum prices rose 1.9% to $1,959.85, and palladium price was up 1.9% at $1,373.25.
The dollar weakened, making greenback-priced bullion more affordable for holders of other currencies.
US-Iran Peace Talks
US President Donald Trump earlier said Washington and Iran had “largely negotiated” a that would reopen the Strait of Hormuz.
However, on Sunday Trump told his representatives not to rush into any deal with Iran, as his administration played down hopes of an imminent breakthrough in the three-month-old war that had been raised a day earlier.
Crude Oil Prices
Crude oil prices hit two-week lows on optimism over the prospects of a US-Iran peace deal, and hopes of reopening of the crucial Strait of Hormuz. Brent crude prices plunged 5.08% to $98.28 a barrel, while US West Texas Intermediate declined 5.29% to $91.49 a barrel.
Meanwhile, gold speculators cut net long positions by 6,239 contracts to 94,388 in the week to May 19, Reuters reported.
(With inputs from Agencies)