By: Economy Middle east

Gold prices rose 0.91 percent on Monday, supported by a weakening dollar and easing crude benchmarks, as market participants evaluated the likelihood of a diplomatic breakthrough in U.S.-Iran peace negotiations. 

Spot gold climbed 0.47 percent to reach $4,564.27 per ounce as of 8:49 UAE time, while U.S. gold futures for June delivery gained 0.91 percent to settle at $4,597.75. The subsequent depreciation of the dollar enhanced the appeal of greenback-priced bullion, making it more affordable for international investors holding alternative currencies.

Gold rates within the UAE saw an upward trend. The value of 24-carat gold increased by AED7.75, reaching AED551.00 and AED524.25. Meanwhile, 22-carat gold prices rose by AED7.00 to AED510.25, and 21-carat gold gained AED6.75 to stand at AED489.25. Furthermore, 18-carat gold grew by AED6.00 to AED419.50, while 14-carat gold climbed by AED4.50 to AED327.00.

Oil sliding alters outlook

The financial movement came amidst mixed signals regarding regional geopolitical developments. U.S. President Donald Trump indicated that Washington and Iran had largely negotiated a memorandum of understanding to reopen the Strait of Hormuz. However, the administration subsequently tempered immediate expectations, with President Trump noting he instructed representatives not to rush into a final agreement.

Concurrently, oil prices slid to two-week lows on de-escalation hopes, directly shifting macroeconomic expectations. Because elevated crude costs typically fuel inflation and prompt central banks to keep interest rates higher for longer, a cooling oil market alters the outlook for non-yielding assets. While gold serves as an established inflation hedge, higher borrowing costs generally weigh on the metal.

This shifting environment marks a critical start for Kevin Warsh, who was formally sworn in as chair of the U.S. Federal Reserve on Friday. His term begins at a pivotal juncture for the American economy, where surging gasoline prices linked to the three-month-old conflict have continuously driven inflationary pressures and dented consumer sentiment.

Broader metals performance

Other precious metals followed gold’s upward trajectory during the session, posting strong gains across the board. 

Spot silver led the sector with a 1.63 percent surge to reach $77.93 per ounce. In parallel transactions, platinum advanced 1.75 percent to settle at $1,973.65, while palladium moved up 2.31 percent to trade at $1,413.00. This synchronized advance across industrial and precious commodities indicates widespread capital reallocation toward alternative assets as investors navigate changing interest rate projections and complex geopolitical timelines.