Gold on Monday rose after Iran cited progress in U.S.-Iran peace talks, though bets of higher interest rates weighed on the metal’s outlook.<\/p>\n
Brendon Thorne | Bloomberg | Getty Images<\/p>\n
Gold\u00a0on Monday rebounded from a more than one-week low hit in the last session, as oil prices fell after Iran\u00a0cited\u00a0progress in U.S.-Iran peace talks, though bets of higher interest rates after hawkish U.S. Federal Reserve<\/a> signals weighed on the metal’s outlook.<\/p>\n Spot\u00a0gold<\/a>\u00a0was up 0.9% at $4,197.41 per ounce, as of 0238 GMT, after falling to its lowest level since June 11 on Friday. U.S.\u00a0gold\u00a0futures<\/a>\u00a0for August delivery fell 0.7% to $4,215.90.<\/p>\n The first round of\u00a0talks\u00a0between high-ranking U.S. and Iranian officials in Switzerland ended Monday, with an Iranian foreign ministry spokesperson saying good\u00a0progress\u00a0has been made, according to Iran’s Press TV.<\/p>\n A joint statement from mediating nations Qatar and Pakistan said the U.S. and Iran agreed to a roadmap toward a final deal within 60 days.<\/p>\n “The current situation in Switzerland is quite different from a few hours ago when the two sides were squabbling, but now it seems they’re making some progress,” said Edward Meir, an analyst at Marex.<\/p>\n “We’re going to be trading on geopolitical guidelines for a little while longer but the situation is fluid so perhaps best to watch the action from the sidelines for now,” Meir added.<\/p>\n Brent crude futures fell over 1% after the announcement. Elevated oil prices stoke inflation concerns and raise expectations of higher interest rates.\u00a0Gold\u00a0tends to lose appeal when rates are high, as it does not yield interest.<\/p>\n Meanwhile, Federal Reserve Chair Kevin Warsh’s\u00a0emphasis\u00a0on inflation in last week’s press conference, without any more-nuanced commentary about what might clear the bar for a rate hike, led investors to conclude an increase was coming soon.<\/p>\n Nine of the\u00a0Fed’s 19\u00a0policymakers believe they will need to\u00a0raise\u00a0the policy rate this year.<\/p>\n Traders see an 89% chance of a rate hike in December, from 61% before the Fed’s meeting, according to the CME FedWatch Tool.<\/p>\n Spot silver<\/a>\u00a0rose 1.8% to $66.10 per ounce, platinum<\/a>\u00a0gained 0.2% to $1,667.97, and palladium<\/a>\u00a0was up 1% at $1,270.41.<\/p>\n