Gold Rises Above $4,557 on Optimism Over U.S.-Iran Talks

Gold prices climbed more than 1% on Monday to $4,557.46 per ounce as hopes for progress between the United States and Iran weakened the dollar and pushed oil prices lower, easing inflation expectations. U.S. futures contracts also rose 0.8% to $4,558.80. President Trump said the two countries had agreed “largely” on a draft deal that would allow the Strait of Hormuz to reopen. The prospect of an agreement with Iran helped pressure oil prices lower, which analysts said could provide inflation-related support for gold. Gold has benefited from the shift in market sentiment as traders priced in the possibility of lower energy costs and reduced inflation pressure. The move came against the backdrop of renewed diplomatic expectations surrounding Washington and Tehran. Secretary of State Rubio said the United States would either reach a good deal with Iran or deal with the country “differently.”