Gold gains as US dollar declines, hopes of Mideast deal hit oil
GLD•Other precious metals
Spot silver XAG= gained 0.5% to $57.93, platinum XPT= rose 0.1% to $1,643.46, and palladium XPD= was steady at $1,273.12.
Gold rises as dollar weakens and oil falls
Gold prices gained on Monday as the dollar weakened and optimism over a possible U.S.-Iran agreement sent oil prices sharply lower, tempering inflation fears and expectations of prolonged high interest rates.
Spot gold XAU= was up 0.2% at $4,048.84 per ounce, as of 1042 GMT. U.S. gold futures GCcv1 edged 0.2% higher to $4,048.80. The precious metal posted its first monthly rise in five in July, rising about 1%.
Dollar, Treasury yields and U.S. data in focus
Further supporting gold, the U.S. dollar came under pressure, hitting its lowest since mid-June, after authorities intervened in the foreign exchange market to support the yen, while yields on the benchmark 10-year U.S. Treasury note US10YT=RR also fell. USD/ US/
Also in focus is a set of U.S. jobs reports due this week, including the ADP employment report, and nonfarm payrolls data.
"A weaker U.S. job market would allow the Fed to keep rates on hold this year, and that would be positive for gold, as the market prices out rate hikes for this year," Staunovo 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.
Oil slump and softer rates outlook support bullion
Oil prices slumped more than $4 a barrel, after U.S. President Donald Trump held off a fresh attack on Iran as he sought a quick deal that would halt Tehran's nuclear ambitions and reopen the Strait of Hormuz. O/R
