Gold prices rose more than 1% on Monday, ‌supported by a weaker dollar and easing oil prices, as investors weighed prospects of a breakthrough in US-Iran peace negotiations.

Spot gold was up 1.1% at $4,560.09 per ounce, US gold futures for June delivery gained 0.9% to $4,562.10.

The dollar ​weakened, making greenback-priced bullion more affordable for holders of other currencies.

“Trump ⁠has been raising market hopes for some sort of deal with Iran, which ​could lead to the reopening of the Strait of Hormuz.

That prospect has ​weighed on oil prices and, by extension, given gold a welcome lift from an inflation perspective,“ said Tim Waterer, chief market analyst at KCM Trade.

US President Donald Trump said on Sunday ​he had instructed his representatives not to rush into any deal with Iran, ​as his administration played down expectations of an imminent breakthrough in the three-month-old war.

A day earlier, ‌Trump ⁠said Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz.

Oil prices hit two-week lows on Monday on optimism that the US and Iran were moving closer towards a peace ​deal, even though both ​countries remained at ⁠odds over key issues.

Oil prices influence inflation expectations. Elevated crude can fuel inflation and keep interest rates higher for longer. ​While gold is seen as an inflation hedge, higher rates ​tend to ⁠weigh on the non-yielding metal.

Kevin Warsh was sworn in as chair of the US Federal Reserve on Friday at a pivotal moment for the American economy, where surging gasoline ⁠prices linked ​to the Iran war fuel inflation and ​erode consumer sentiment.

Spot silver climbed 3.1% to $77.81 per ounce, platinum rose 2.1% to $1,963.30, and palladium was up ​2.4% at $1,381.82.