Khaberni - Gold rose slightly on Monday, supported by a dollar decline after a report stated that Iran had proposed a new plan to end the war with the United States, which revived hopes of de-escalation in the Middle East.
As of 04:07 GMT, spot gold increased by 0.4% to $4726.62 per ounce. Over the past week, the precious metal lost 2.5%, ending a four-week gain streak.
U.S. futures contracts for gold delivery in June remained stable at $4742.
The dollar declined, which supported the precious metal, after a report indicated that Iran had submitted to the United States, through Pakistani intermediaries, a new proposal regarding the reopening of the Strait of Hormuz and ending the war.
Kyle Rodda, head of financial market analysis at Capital.com, said "We are now watching to see if there is any progress in the talks (between the United States and Iran) in the coming days, which will be a major driver for gold."
U.S. President Donald Trump said on Sunday that Iran could call if it wanted to negotiate an end to the ongoing two-month war, emphasizing that it would never possess a nuclear weapon, after Tehran said the United States needs to remove obstacles to reaching an agreement, including its blockade of Iranian ports.
Trump canceled on Saturday a trip that was scheduled for two U.S. envoys to Pakistan, which is mediating peace talks with Iran, marking a setback for peace prospects after the Iranian Foreign Minister left Islamabad having only spoken to Pakistani officials.
Oil prices rose as the stumbling peace talks between the United States and Iran prolonged the disruption in energy exports in the Middle East.
Investors are waiting for the Federal Reserve's (the U.S. central bank) decision on interest rates on Wednesday, after its two-day meeting.
Rodda said "This could be supportive for gold or an additional obstacle, depending on whether the Federal Reserve indicates it sees the possibility of keeping monetary policy unchanged for the rest of the year due to the inflationary effects of the energy crisis."
For other precious metals, spot silver rose 1% to $76.45 per ounce, platinum increased 0.7% to $2025.20, and palladium fell 0.2% to $1493.50.
