Ammon News - Gold rebounded from a more than ‌one-week low on Monday, as oil prices fell after Iran cited progress in U.S.-Iran peace talks, though bets of higher interest rates after hawkish U.S. Federal Reserve signals weighed on the metal's outlook.

Spot gold was ​up 0.8% at $4,194.99 per ounce, as of 0608 GMT, after falling to its ​lowest level since June 11 on Friday. U.S. gold futures for August ⁠delivery fell 0.8% to $4,213.10.
The first round of talks between high-ranking U.S. and Iranian officials in ​Switzerland ended Monday, with an Iranian foreign ministry spokesperson saying good progress has been made, according ​to Iran's Press TV.

A joint statement from mediating nations Qatar and Pakistan said the U.S. and Iran agreed to a roadmap toward a final deal within 60 days.

"The current situation in Switzerland is quite ​different from a few hours ago when the two sides were squabbling, but now ​it seems they're making some progress," said Edward Meir, an analyst at Marex.

"We're going to be trading ‌on ⁠geopolitical guidelines for a little while longer, but the situation is fluid so perhaps best to watch the action from the sidelines for now."

Brent crude futures fell more than 1% after the announcement. Elevated oil prices stoke inflation concerns and raise expectations of higher interest ​rates. Gold tends to ​lose appeal when ⁠rates are high, as it does not yield interest.

Meanwhile, Fed Chair Kevin Warsh's emphasis on inflation in last week's press conference, without any ​more-nuanced commentary about what might clear the bar for a rate ​hike, led ⁠investors to conclude an increase was coming soon.

Nine of the Fed's 19 policymakers believe they will need to raise the policy rate this year.

Traders see an 89% chance of a rate hike ⁠in December, ​from 61% before the Fed's meeting, according to ​the CME FedWatch Tool.

Spot silver rose 2.4% to $66.48 per ounce, platinum gained 0.7% to $1,675.91, and palladium was up 1.8% ​at $1,280.45.

Reuters