Ammon News - Gold rebounded on Tuesday from a near one-week low hit the day ‌before, on a softer dollar and as oil prices fell on hopes of further U.S.-Iran peace talks, easing inflation fears.

Spot gold was up 0.7% at $4,769.77 per ounce, as of 0509 GMT, after hitting its lowest ​level since April 7 in the previous session. U.S. gold futures for June ​delivery rose 0.5% to $4,791.70.

Oil prices fell below $100 a barrel as signs of ⁠potential U.S.-Iran dialogue to end their war eased concerns about supply risks stemming from the ​U.S. blockade of the Strait of Hormuz.

Higher crude prices feed into inflation by raising transportation ​and production costs. While inflation typically boosts gold's appeal as a hedge, elevated interest rates weigh on the non-yielding metal's demand.

Meanwhile, the U.S. military began a blockade of Iran's ports on Monday, President Donald Trump said, and Tehran threatened to retaliate against its Gulf neighbours' ports after weekend talks in Islamabad on ending the war broke ​down.

Additionally, the U.S. dollar ​hovered near its ⁠lowest level in more than a month, making gold denominated in the greenback more affordable for holders of other currencies.

Among other metals, spot silver rose 2% to $77.05 per ounce, platinum gained 0.4% to $2,077.72, while palladium ​was down 0.1% at $1,571.65.

Reuters