Gold firms as oil prices slump after Trump holds off on Iran attack
GLD•Other precious metals also advance
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.
Gold rises as oil falls on easing Iran tensions
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.
Dollar pressure, jobs data and Fed comments in focus
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%.
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.
