Gold prices rose by more than 1% on Monday, supported by a weakening dollar and lower oil prices, as investors contemplated the possibility of advancements in U.S.-Iran peace negotiations. Spot gold rose by 1.4% to $4,570.88 per ounce as of 0045. Gold futures in the U.S. for June delivery rose by 1.1% to reach $4,572.90. The dollar has weakened, leading to a drop in bullion prices for those holding other currencies. U.S. President Donald Trump mentioned on Sunday that he had directed his representatives to refrain from rushing into any agreement with Iran, as his administration moderated expectations concerning a possible breakthrough in the ongoing conflict that had been hinted at the day before.

A day earlier, Trump stated that Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz. Oil prices fell to their lowest levels in two weeks on Monday, fuelled by hopes for a possible peace agreement between the U.S. and Iran, even as significant disagreements persist. Kevin Warsh was sworn in as chair of the U.S. Federal Reserve on Friday at a crucial time for the American economy, where rising petrol prices linked to the Iran war are increasing inflation and diminishing consumer sentiment.

Gold maintained a notable discount in India last week, with price fluctuations dampening demand, while premiums eased in China. Gold speculators cut their net long position by 6,239 contracts, resulting in a total of 94,388 for the week ending May 19. Spot silver increased by 3.9% to $78.42 per ounce, platinum gained 1.9% to $1,959.85, and palladium also rose by 1.9% to $1,373.25.