Weaker Dollar Pushes Gold Near $4,070 Amid Fed Concerns

Gold prices recovered towards $4,070 an ounce on Monday as a weaker dollar and falling oil prices offered relief after concerns about Federal Reserve tightening had pressured bullion.

The spot gold price gained 0.7% to $4,068.54 by 4:37 am GMT, while US futures rose 0.9% to $4,066.60.

A weaker dollar made gold cheaper for buyers using foreign currencies, encouraging buy-the-dip arguments, although the metal needs weakness in the dollar and Treasury yields before Monday's advance can be treated as a durable bottom.

Lower oil prices eased fears that the US-Iran conflict would keep energy inflation elevated and force the Fed to raise borrowing costs.