On Monday, gold prices rose by 1.1% to $4,559.07 per ounce, while U.S. gold futures for June delivery increased by 0.8% to $4,559.80. This uptick was driven by market optimism regarding a potential peace deal between the U.S. and Iran, which could lead to the reopening of the Strait of Hormuz.
Tim Waterer, chief market analyst at KCM Trade, noted that President Trump's comments about a largely negotiated memorandum of understanding with Iran have raised hopes for a resolution, subsequently easing oil prices and contributing to a more favorable inflation outlook.
The dollar's decline to its lowest level in a week made gold more affordable for international buyers, further supporting its price. Additionally, oil prices fell to two-week lows, which is significant as elevated crude prices can drive inflation and influence interest rates. The recent appointment of Kevin Warsh as chair of the U.S.
Federal Reserve comes at a critical time, as rising gasoline prices linked to geopolitical tensions are impacting inflation and consumer sentiment. Other precious metals also saw gains, with silver up 3.1% to $77.79 per ounce, platinum rising 2.3% to $1,966.59, and palladium increasing by 2.7% to $1,384.70