Gold has gained on hopes of a potential US-Iran ceasefire, but prices are on track for a third straight monthly decline as concerns about energy-driven inflation bolster expectations of higher interest rates, Reuters reports.

Spot gold was up 0.9 per cent at $4,532.03 per ounce, as of 11:51 GMT (4:51pm PKT). Bullion fell to a two-month low of $4,365.76 yesterday, but closed higher. The metal has fallen around 2pc so far this month.

US gold futures for August delivery rose 0.7opc to $4,562.60.

“Gold remains negatively correlated to oil, which impacts inflation and monetary policies. Lower oil prices reduces the probability of rate hikes, which is positive for gold,” said UBS analyst Giovanni Staunovo.