Ammon News - Gold prices rose on Thursday, supported by a weaker dollar, while investors weighed growing optimism over a potential U.S.-Iran deal to end the war that has pushed up energy prices and fueled fears of higher inflation.

Spot gold rose 0.7% to $4,821.44 per ounce by 0301 GMT. U.S. gold futures for June delivery gained 0.4% to $4,844.40.

The U.S. dollar hovered near its lowest level in six weeks, making greenback-denominated commodities including bullion more affordable for holders of other currencies, while benchmark 10-year U.S. Treasury yields eased 0.1%.

Spot gold prices have fallen more than 8% since the Iran war began in late February amid concerns that elevated energy prices could feed into inflation and keep global interest rates higher.

While gold is considered a hedge against inflation, higher interest rates weigh on the non-yielding metal’s demand.

In the U.S., traders now see a 29% chance of a 25-basis-point interest rate cut this year. Before the war, there were expectations of two reductions for this year.

Spot silver rose 1.7% to $80.41 per ounce, platinum gained 1.2% to $2,135.58, and palladium was up 0.9% at $1,587.39.

Reuters