Dollar Weakness Fuels Gold Gains as Iran Talks Ease Market Tensions

Gold prices rose on Monday, buoyed by a weakening US dollar and lower oil prices. The market's mood lifted after Donald Trump announced new Iran talks, easing concerns about potential conflict in the Middle East.

Spot gold increased by 0.7% to $4,068.54 per ounce, while US gold futures rose 0.9% to $4,066.60. Silver and palladium also saw gains, with analysts predicting that seasonal buying could provide short-term support for gold despite ongoing uncertainty.

Despite the upward trend, investors remain cautious ahead of upcoming US economic data releases. This data is expected to influence central bank decisions and interest rates, which typically have a negative impact on gold prices.