Spot gold rose 1.1% to $4,558.55 an ounce by 01:35 ET (05:35 GMT), while gold futures gained 0.8% to $4,593.34 per ounce. The broader precious metals complex also strengthened on Monday.<\/p>\n
Spot silver climbed 2.9% to $77.7250 per ounce, and spot platinum increased 2% to $1,968.12 per ounce. The gains followed a sharp decline in both the U.S. dollar and global bond yields, conditions that typically support bullion and other non-yielding assets.<\/p>\n
Recent months had seen pressure on gold from rising bond yields and a stronger dollar, driven by concerns that energy-driven inflation from the Iran war could prompt further interest rate hikes by the Federal Reserve and other major central banks. Those concerns eased somewhat on Monday as markets reacted to signs of diplomatic progress.<\/p>\n
U.S. President Donald Trump said over the weekend that the framework for a peace deal with Iran was \u201clargely negotiated.\u201d Media reports indicated that the potential agreement would extend the current U.S.-Iran ceasefire and reopen shipping through the Strait of Hormuz, a key route for resupplying global oil markets.<\/p>\n
U.S. Secretary of State Marco Rubio stated that the United States and Iran had a \u201cpretty solid\u201d framework deal to reopen Hormuz and that Washington was awaiting Tehran\u2019s response. However, Rubio also suggested that renewed military action against Iran was possible if it did not accept a deal, echoing a similar warning from Trump.<\/p>\n
Rubio indicated there was no urgency to finalize an agreement and said that a U.S. naval blockade of Iran would remain in place until a deal is reached. Other reports pointed to ongoing disagreements between Washington and Tehran on key issues, particularly Iran\u2019s nuclear activities and U.S. demands for Tehran to hand over its enriched uranium holdings.<\/p>\n
Despite these points of contention, expectations that a peace deal could be nearing helped calm market fears about prolonged energy-driven inflation. The resulting pullback in the dollar and bond yields supported the rally in gold and other precious metals on Monday.<\/p>\n
Why did gold prices rise on Monday?<\/strong> What are the latest developments in U.S.-Iran negotiations?<\/strong> How did other precious metals perform?<\/strong>
Gold prices rose due to a combination of a weaker U.S. dollar, falling global bond yields, and market optimism about progress toward a U.S.-Iran peace deal that could reduce energy-related inflation risks.<\/p>\n
President Donald Trump and Secretary of State Marco Rubio indicated that a \u201clargely negotiated\u201d and \u201cpretty solid\u201d framework exists to extend the ceasefire and reopen the Strait of Hormuz, though key disagreements, especially over Iran\u2019s nuclear activities, remain.<\/p>\n
Spot silver rose 2.9% to $77.7250 per ounce, and spot platinum increased 2% to $1,968.12 per ounce in Monday\u2019s Asian trade.<\/p>\n