Gold prices rose more than 1pc as investors weighed diplomatic efforts to ease the US-Iran conflict, which could temper oil-driven inflation risks and influence the US Federal Reserve’s interest rate path, Reuters reports.

Spot gold XAU= rose 1.6pc to $4,071.59 per ounce by 07:50am GMT. US gold futures GCcv1 for August delivery were up 1.5pc at $4,076.00.

“It looks like gold is trying to find a base somewhere around this ($4,000) level and is going to try to re-engage the upside from there,” said Ilya Spivak, head of global macro at Tastylive.

“These headlines from the Middle East seem to have some degree of knock-on, though it is increasingly only being paid attention to in a passing kind of way.”