Weaker Dollar Boosts Gold Prices by Over 1%

Gold prices surged over 1% on Monday as a weaker U.S. dollar made it cheaper for investors to buy the precious metal, despite eased tensions between Washington and Tehran reducing demand for traditional safe-haven assets.

The spot price of gold rose 1.4% to $4,110.56 an ounce, while U.S. gold futures advanced 1% to $4,112.10 an ounce.

The decline in the dollar index by 0.3% made dollar-denominated gold less expensive for investors holding other currencies, thereby boosting demand.

Other precious metals also posted significant gains, with spot silver climbing 2.8% to $59.81 an ounce and platinum rising 2.6% to $1,629.15 an ounce.

Market participants are now closely monitoring upcoming U.S. economic data and signals from the Federal Reserve for clues on the future path of interest rates, which could impact the outlook for bullion and other precious metals.