Shafaq News
Gold edgedhigher on Monday, supported by a softer dollar as a report of a new proposal byIran to end the war with the U.S. raised hopes of a de-escalation in the MiddleEast conflict.
Spot goldwas up 0.4% at $4,726.62 per ounce, as of 0407 GMT. Last week, the metal fell2.5% to snap a four-week winning streak.
U.S. goldfutures for June delivery were steady at $4,742.
Lendingsupport to bullion, the dollar eased after a report said that Iran throughPakistani mediators gave the U.S. a new proposal on reopening the Strait ofHormuz and ending the war.
"We'rejust sort of watching now whether there's progress in the (U.S.-Iran) talks atall in the coming days and that's going to be the biggest driver forgold," said Kyle Rodda, a senior financial market analyst at Capital.com.
U.S.President Donald Trump said on Sunday that Iran could telephone if it wants tonegotiate an end to their two-month war and stressed it can never have a nuclear weapon.
Trumpcancelled a trip by two U.S. envoys to Iran war mediator Pakistan on Saturday,dealing a setback to peace prospects.
Oil pricesrose as the stalled peace talks prolonged the disruption of Middle East energyexports.
Highercrude oil prices can stoke inflation by raising transportation and productioncosts, increasing the likelihood of higher interest rates.
While goldis considered an inflation hedge, high interest rates make yield-bearing assetsmore attractive, weighing on its appeal.
Investorsnow await the U.S. Federal Reserve's interest rate decision on Wednesday.
"Itcould either be a support to gold or an increased headwind, depending on if theFed sort of indicates whether it sees itself potentially keeping policyunchanged for the rest of the year because of the inflationary impacts of the energycrisis," said Rodda.
Spot silverrose 1% to $76.45 per ounce, platinum gained 0.7% to $2,025.20, while palladiumwas down 0.2% at $1,493.50.
(Reuters)
Only theheadline is edited by Shafaq News staff.