Gold prices advanced 2% on Monday after officials from the United States and Iran announced that they had reached an initial understanding aimed at ending hostilities between the two countries.
The development triggered a decline in oil prices and reduced concerns about persistent inflation and elevated interest rates.
Spot gold rose 2% to $4,304.11 an ounce by 0122 GMT, reaching its highest level since June 9. US gold futures for August settlement also gained 2%, trading at $4,325.20.
