Gold prices rose on Monday as oil prices fell after US President Donald Trump called off a new attack on Iran in hopes of a quick agreement, slightly easing concerns about inflation and rising interest rates.

Fundamental factors

Gold rose 0.7% to $4,067.06 per ounce in spot trading by 00:23 GMT. U.S. gold futures also climbed 0.9% to $4,065.60 per ounce.

Late Saturday, Trump said on the Truth Social platform that Iran and other Middle Eastern countries had requested time to finalize an agreement that would "immediately, completely, and fully" reopen the Strait of Hormuz and "end the Iranian nuclear threat," according to Reuters.

Oil prices fell by more than $5 a barrel at the start of trading on Monday.