Gold gains on softer dollar as US-Iran peace deal hopes rise

Gold prices rose on Thursday, supported by a weaker dollar, while investors weighed growing optimism over a potential US-Iran deal to end the war that has pushed up energy prices and fuelled fears of higher inflation. Spot gold rose 0.7% to $4,821.44 per ounce by 0301 GMT. US gold futures for June delivery gained 0.4% to $4,844.40. The US dollar hovered near its lowest level in six weeks, making greenback-denominated commodities including bullion more affordable for holders of other currencies, while benchmark 10-year US Treasury yields eased 0.1%. “The primary driver (for gains in gold) is the optimism about a US-Iran ceasefire,” said Kelvin Wong, a senior market analyst at OANDA.