Ammon News - Gold rose ​on Monday as oil prices fell after U.S. President Donald Trump held ‌off on fresh attacks on Iran in hopes of a swift deal, slightly easing concerns over inflation and higher interest rates.

Spot gold was up 0.7% at $4,068.54 per ounce, as of 0437 GMT. U.S. gold ​futures rose 0.9% to $4,066.60.

The U.S. dollar came under pressure after authorities intervened in the ​foreign exchange market to support the yen, making dollar-priced bullion more affordable ⁠for overseas buyers.

Gold has made a relatively cheery start to the week but gains remain ​limited given the uncertainty around the oil markets and the Middle East, so it's an ​upbeat but guarded start for the metal, said Tim Waterer, chief market analyst at KCM Trade.

Trump said talks with Iran will happen on Monday but declined to set a deadline for an agreement. Oil ​prices fell more than 5%.

Gold has come under pressure since the start of the U.S.-Iran ​conflict, as a war-driven rise in inflation could prompt central banks to raise interest rates. Although bullion ‌is ⁠traditionally viewed as a hedge against inflation, its appeal tends to diminish in a high-interest-rate environment because it does not yield interest.

Market participants will also focus on a slew of U.S. jobs reports due this week, including job openings data, the ADP employment report, weekly ​jobless claims and the ​nonfarm payrolls report.

"Any renewed ⁠escalation in the Middle East that pushes oil higher, or a strong NFP print that reinforces September rate-hike odds, could cap the ​upside," Waterer said.
Three U.S. Federal Reserve officials who dissented at the policy ​meeting last ⁠week in favour of a rate hike expressed concerns on Friday that without an immediate increase in short-term borrowing costs, inflation will stay stuck above the Fed's 2% target.

Analysts at Standard ⁠Chartered said ​in a note that they continue to expect gold ​to find near-term support before recovering on seasonal buying.

Spot silver gained 1.4% to $58.46, platinum climbed 0.5% to $1,650.63, and palladium ​firmed 1.6% to $1,293.50.


Reuters