Gold prices rose more than 1% on Monday, supported by a weaker U.S. dollar, even as a temporary easing of tensions between the United States and Iran reduced demand for traditional safe-haven assets.
Spot gold gained 1.4% to $4,110.56 an ounce, while U.S. gold futures advanced 1% to $4,112.10 an ounce.
The U.S. dollar index fell 0.3%, making dollar-denominated gold less expensive for holders of other currencies and helping lift demand for the precious metal.
The gains came despite signs of reduced geopolitical risks in the Middle East after a temporary easing of tensions between Washington and Tehran. A sharp decline in crude oil prices also reflected easing concerns over potential supply disruptions in the region.
Other precious metals also posted strong gains. Spot silver climbed 2.8% to $59.81 an ounce, platinum rose 2.6% to $1,629.15, and palladium added 2.1% to $1,269.43 an ounce.
Market participants are also closely monitoring upcoming U.S. economic data and signals from the Federal Reserve for clues on the future path of interest rates, which could influence the outlook for bullion and other precious metals.
