Gold prices climbed in early European trading, supported by a weaker US dollar and optimism over a potential breakthrough in US-Iran negotiations that could improve the inflation outlook. Futures in New York rose 0.8%, while the dollar index slipped 0.2%, making dollar-priced commodities cheaper for overseas buyers. Hopes for a reopening of the Strait of Hormuz also pushed Brent crude down more than 5%, easing concerns over energy-driven inflation. Gains in gold were limited, however, as weak US

Gold prices climbed in early European trading, supported by a weaker US dollar and optimism over a potential breakthrough in US-Iran negotiations that could improve the inflation outlook. Futures in New York rose 0.8%, while the dollar index slipped 0.2%, making dollar-priced commodities cheaper for overseas buyers. Hopes for a reopening of the Strait of Hormuz also pushed Brent crude down more than 5%, easing concerns over energy-driven inflation. Gains in gold were limited, however, as weak US consumer confidence and expectations of potential Federal Reserve rate hikes continued to weigh on non-yielding assets.