Gold prices have climbed as a pause in strikes between US and Iranian forces dragged crude oil prices lower, helping ease inflation concerns and worries about the risk of higher interest rates in a week where policymakers at the Fed are due to meet, Reuters reports.

Spot gold gained 0.9pc to $4,089.03 per ounce by 08:05am GMT (1:05pm PKT) while US gold futures for August delivery rose 0.5pc to $4,090.80.

“Precious metals have started the week on the front foot, helped by a pause in Middle East hostilities. Oil has slumped and both the dollar and US Treasury yields have eased,” said independent analyst Ross Norman.

The U.S dollar index dropped 0.2pc, making greenback-priced bullion more affordable for buyers overseas.