(RTTNews) - Gold reversed earlier losses to trade above $4,500 an ounce on Monday amid mixed signals from Iran and the United States on the status of peace talks.
Spot gold was up 0.8 percent at $4,531 an ounce while U.S. gold futures for June delivery traded up 0.8 percent at $4,560.
The dollar was near a 10-month high and headed for its biggest monthly gain since last July as rising energy risks amid escalating U.S.-Iran tensions rattled investors.
Oil prices headed for their biggest monthly rise ever as the Middle East conflict entered its fifth week with no clear resolution in sight.
U.S. President Donald Trump described Iran's replacement leaders as 'very reasonable', raising hopes of a possible breakthrough as fighting and uncertainty continue in the region.
At the same time, he has made fresh threats, saying he would love to "take the oil in Iran" and the U.S. could take Kharg Island, Iran's oil export hub, "fairly easily."
Investors braced for a prolonged Gulf conflict after the Houthis joined the Iran war and additional U.S. troops arrived in the Middle East.
There are fears that the Yemini Houthis may launch strikes on vessels transiting the Red Sea and key Saudi Arabian energy infrastructure.
The Pentagon is reportedly preparing for weeks of ground operations in Iran.
In economic releases, investors will scrutinize the U.S. JOLTS job vacancy figures, consumer confidence data, the ADP employment survey results, the final S&P manufacturing and services reports and the March jobs report this week for direction. Scheduled speeches by Federal Reserve Chair Jerome Powell and the influential head of the New York Fed, John Williams, later in the day will be analyzed for potential shifts in monetary policy.
Philadelphia Fed President Anna Paulson said the Iran war has created new risks to both inflation and growth without specifying what it meant for monetary policy in the near term.
According to CME's FedWatch Tool, markets are not pricing in any easing from the U.S. Federal Reserve this year, compared with expectations of two cuts before the Middle East conflict broke out.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
