NEW YORK / Content Syndication Services / — Gold prices advanced on Monday as a softer U.S. dollar made bullion less expensive for buyers using other currencies, while lower oil prices shaped trading across commodities. Spot gold rose 1.5% to $4,574.17 an ounce by 1118 GMT, and U.S. gold futures for June delivery gained 1.2% to $4,576.00. The move followed a wider shift in dollar-denominated assets during a session marked by lighter U.S. trading because of the Memorial Day holiday.
The dollar weakened against major peers, providing direct support to gold, which is priced internationally in the U.S. currency. A lower dollar generally reduces the cost of bullion for holders of other currencies and can increase demand in key physical and financial markets. The dollar index was reported lower in early trading, while gold remained above levels seen earlier in the session, when spot prices were near $4,570 an ounce.
Oil prices also declined, with Brent crude falling below $100 a barrel, adding to the broader market backdrop for precious metals. Gold had moved lower earlier in the month as energy prices and inflation concerns influenced expectations for interest rates. Monday’s trading showed renewed demand for bullion alongside gains in other precious metals, as investors tracked the combined movement in currency, oil and rates markets.
Dollar weakness supports bullion
Silver rose sharply in the same session, gaining more than 3%, while platinum and palladium also posted advances. The broader precious metals complex benefited from the same weaker dollar environment that supported gold. Silver was among the strongest performers, reflecting both precious metal demand and industrial exposure, while platinum and palladium followed the wider upward move in metals during European trading hours.
Gold’s movement came as investors monitored developments involving the United States and Iran, including statements about negotiations connected to regional tensions and the Strait of Hormuz. The waterway remains a major route for global energy shipments, making it a central factor in oil market pricing. Lower oil prices on Monday reduced part of the recent pressure tied to energy costs, while gold’s rise reflected the immediate effect of a weaker dollar.
Rate outlook remains central
The Federal Reserve remained a key reference point for bullion traders because gold does not pay interest and is sensitive to changes in rate expectations. Higher interest rates can reduce the appeal of holding gold compared with yield-bearing assets, while lower rate expectations can support demand. Traders continued to assess how energy prices, inflation data and U.S. economic indicators could affect the policy backdrop without a regular U.S. market session.
Gold remains one of the year’s closely watched commodities after sustained volatility across energy, currencies and metals. Monday’s gains kept bullion firmly above the $4,500 level and extended its recovery during a session driven by dollar weakness, falling oil prices and broad gains across precious metals. The advance highlighted gold’s continued role in global trading during periods when foreign exchange and commodity markets move together.