Gold rises as diplomatic efforts offer hope of de-escalation in Middle East
GLD•Other precious metals advance
Among other metals, spot silver XAG= rose 4.3% to $58.84 per ounce, platinum XPT= inched up 2.1% at $1,626.96, and palladium XPD= gained 2% to $1,277.16.
Gold gains on Middle East diplomacy hopes
July 21 (Reuters) - Gold gained more than 1% on Tuesday as investors weighed reports of fresh mediation efforts in the Middle East, which could weigh on energy prices and tame jitters about higher-for-longer interest rates to contain inflation.
Spot gold XAU= gained 1.3% to $4,056.35 per ounce by 1155 GMT, while U.S gold futures GCcv1 for August delivery rose 1.1% to $4,061.10.
"Gold has been in search of a price floor after its epic rally in January this year when it hit an all-time high and there is some sense the worst in terms of a sell-off may now be behind us," independent analyst Ross Norman said.
"That said, gold does struggle to discover any upside momentum just now and caution remains the watchword," Norman added.
Oil, rates and geopolitical risks shape demand
Oil prices edged higher on Tuesday, but had fallen 1% earlier in the session as markets weighed reports of mediation efforts between the U.S. and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen's Houthis. O/R
A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the interim deal.
