gold-prices" class="internal-tag-link">Gold prices surged sharply in early Asian trade on Monday. Developments over the weekend spurred more hopes for a U.S.-Iran peace deal.
A sharp drop in the dollar and Treasury yields benefited bullion prices. Broader precious metals also rallied on Monday.
Spot gold jumped 1.5% to $4,577.12 an ounce. Gold futures rose 1.2% to $4,612.24/oz.
Spot silver surged 3.8% to $78.3865/oz, while spot platinum climbed 2% to $1,965.45/oz.
U.S. President Donald Trump said over the weekend that the framework for a peace deal with Iran was "largely negotiated." Media reports indicated the potential agreement would extend the current ceasefire and reopen shipping through the Strait of Hormuz.
However, Trump later signaled no hurry to enter a deal and said the U.S. naval blockade of Iran would remain. Reports showed the U.S. and Iran still at odds over key issues, especially Tehran's nuclear activities.
Still, hopes that a peace deal was close helped soothe market concerns over energy-driven inflation. This was a major point of pressure on gold in recent months.
