Gold rises 1% as hopes for US-Iran diplomacy pause oil rally

Spot gold rose 1.6% to $4,071.59 per ounce amid hopes for US-Iran diplomatic efforts, while oil prices softened as markets weighed mediation reports against fresh attacks and Houthi threats. Silver gained 4.5% to $58.96, with platinum up 2.3% and palladium rising 2.8%. Traders are pricing in a 64% chance of a Fed rate hike in September, which could pressure non-yielding bullion going forward.