Gold rises as dollar, oil ease on U.S.-Iran deal prospects

Gold prices rose more than 1% ‌on Monday, as optimism for a breakthrough in U.S.-Iran peace negotiations weakened the dollar and eased oil prices, which softened the inflation outlook. Spot gold was up 1.1% at $4,559.07 per ounce, as ​of 0736 GMT. U.S. gold futures for June delivery gained 0.8% ​to $4,559.80. While U.S. President Donald Trump has warned that he was in ⁠no hurry to finalize a deal with Iran, investors seem to rely ​more on his Saturday statement that Washington and Iran had " largely negotiated " a memorandum ​of understanding on a peace deal that would reopen the Strait of Hormuz. "Trump has been raising market hopes for some sort of deal with Iran, which could lead to the reopening ​of the Strait of Hormuz. That prospect has weighed on oil prices ​and, by extension, given gold a welcome lift from an inflation perspective," said Tim Waterer, chief ‌market ⁠analyst at KCM Trade. The U.S. will either have a good agreement with Iran or deal with the country "another way," Secretary of State Marco Rubio said on Monday. The dollar was around its lowest levels in a week, making greenback-priced bullion more ​affordable for holders ​of other currencies. Oil ⁠prices, which influence inflation expectations, hit two-week lows. Elevated crude can fuel inflation and keep interest rates higher for longer. While ​gold is seen as an inflation hedge, higher rates tend ​to weigh ⁠on the non-yielding metal. Kevin Warsh was sworn in as chair of the U.S. …