Gold prices rose strongly during Monday’s Asian trading session after U.S. officials pointed to further progress toward an agreement to end the war with Iran. This pushed the U.S. dollar and Treasury yields lower, strengthening gains for the precious metal alongside broad advances across other precious metals.
Spot gold rose 1.1% to $4,558.55 per ounce, while gold futures climbed 0.8% to $4,593.34 per ounce. Spot silver also jumped 2.9% to $77.725 per ounce, while spot platinum advanced 2% to $1,968.12 per ounce.
U.S. President Donald Trump said the framework for a peace agreement with Iran had been largely negotiated, while media reports indicated that the potential deal would extend the current ceasefire between Washington and Tehran and reopen shipping through the Strait of Hormuz, which could help restore supplies to global oil markets.
In the same context, U.S. Secretary of State Marco Rubio confirmed that there was a fairly strong framework for reopening the Strait of Hormuz, adding that Washington was waiting for Tehran’s response. However, he hinted at the possibility of resuming military action against Iran if the agreement was not accepted, a threat Trump had also raised earlier.
Despite ongoing disagreements between the two sides over key issues, especially Iran’s nuclear activities and Tehran’s refusal to hand over its stockpile of enriched uranium, hopes of reaching an agreement eased market concerns over inflation driven by energy disruptions caused by the war.
Inflation concerns had pressured gold in recent months, as markets expected the Federal Reserve and other major central banks to continue raising interest rates. This previously pushed bond yields and the dollar higher, weighing on metals markets. However, both the dollar and yields declined again at the start of the week, giving gold additional support.
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