Gold Prices Rise as Dollar Weakens Amid Iranian Proposal to End War with America
Slight Increase in Gold Prices Supported by Weak Dollar
Gold prices rose slightly during trading on Monday, supported by a decline in the US dollar, amid rapid political developments in the Middle East.
This rise comes as investors' appetite for the precious metal as a safe haven improves.
Gold Price Hits $4726.62 per Ounce
As of 04:07 GMT, the price of gold in spot transactions increased by 0.4% to reach $4726.62 per ounce, while US futures contracts for June remained stable at $4742, according to data reported by Reuters.
Gold had lost 2.5% last week, ending a four-week streak of gains.
New Iranian Proposal Pressures Dollar and Moves Markets
The US dollar declined after a report indicated that Iran had made a proposal through Pakistani intermediaries to the United States, which includes reopening the Strait of Hormuz as part of efforts to end the war.
This development has boosted expectations of a potential easing of tensions, which reflected in movements in financial markets.
Analysts: Negotiation Developments are the Key Factor for Gold
Kyle Rodda, senior market analyst at Capital.com, stated that markets are closely monitoring any progress in talks between Washington and Tehran in the coming days, emphasizing that this will be the primary driver of gold prices in the next phase.
Trump's Statements Increase Geopolitical Uncertainty
US President Donald Trump stated that Iran can reach out by phone if it wishes to negotiate to end the ongoing war, while also confirming that it will not possess a nuclear weapon.
These statements come amid complex political disagreements between the two sides regarding the terms of the agreement.
Peace Talks Disruption Reflects on Energy Markets
The stalled peace talks between the US and Iran have supported oil prices, with ongoing concerns about the stability of energy exports in the Middle East, adding further pressure on global markets.
Watch for Federal Reserve Decision on Interest Rates
Investors are monitoring the upcoming meeting of the US Federal Reserve on Wednesday, amid expectations that its decision on interest rates will have a direct impact on gold movements, either supporting or pressuring it depending on monetary policy direction.
Silver and Platinum Rise, Slight Decline in Palladium
Other precious metals showed mixed movements, with silver rising by 1% to $76.45 per ounce, platinum increasing by 0.7% to $2025.20, while palladium declined by 0.2% to $1493.50.
