dollar

Bullion climbed more than 1 per cent as renewed optimism around a potential US-Iran agreement weighed on oil prices and weakened the dollar

Even as gold serves as a hedge against inflation and geopolitical uncertainty, the metal loses appeal in a high-rate environment as it offers no yield

The US and Iran have agreed to a two-week ceasefire, subject to Iran’s agreement to pause its blockade of oil and gas supplies through the Strait of Hormuz

Oil prices fell below $100 a barrel, easing inflation concerns, on the prospect of a possible ceasefire easing supply disruptions from the key Middle East producing region

The US dollar firmed 0.2 per cent, making dollar-priced bullion more expensive for holders of other currencies

Gold prices fell on Monday as higher energy costs fanned inflation concerns and further dimmed the prospects for a near-term cut in interest rates by the US Federal Reserve

The European Commission demanded on Sunday the US stick to a deal reached last year with the EU, which includes zero tariffs on some products such as aircraft and spare parts

A US aircraft carrier and supporting warships arrived in the Middle East, US officials said earlier this week

Markets remain focused on the Fed’s policy outlook after the US central bank delivered a 25-basis-point rate cut last week in a rare split decision

The Fed reduced rates by 25 basis points on Wednesday and indicated it will steadily lower borrowing costs for the rest of this year