Gold gains as oil slumps after Trump holds off on Iran attack

Aug. 3 (Reuters) - Gold rose on Monday as oil prices tumbled after U.S. President Donald Trump held off on a fresh attack on Iran in hopes of a swift deal, slightly easing concerns about inflation and higher interest rates.

• Spot gold XAU= was up 0.7% at $4,067.06 per ounce, as of 0023 GMT. U.S. gold futures GCcv1 rose 0.9% to $4,065.60.
• Trump said late on Saturday on his Truth Social platform that Iran and other Middle Eastern countries had asked for time to complete a deal that would lead to "the Immediate, Complete and Total" reopening of the Strait of Hormuz and "an end to Iran's nuclear threat".
• Oil prices fell more than $5 a barrel at Monday's open. O/R
• 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.
• Three Federal Reserve officials who dissented at last week's policy meeting in favour of an interest rate hike expressed concern on Friday that without an immediate increase in short-term borrowing costs, inflation will stay stuck above the Fed's 2% target, where it has been for more than five years.
• 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.
• Spot silver XAG= gained 0.7% to $58.02 per ounce, platinum XPT= climbed 0.7% to $1,653.78, and palladium XPD= firmed 1.5% to $1,293.00.
• Russia's Norilsk Nickel, the world's largest palladium producer, reported on Friday that its revenue and net profit in the first six months had sharply increased.

	DATA/EVENTS (GMT)