Gold prices rose more than 1% ‌on Monday, as optimism for a breakthrough in U.S.-Iran peace negotiations weakened the dollar and eased oil prices, which softened the inflation outlook.Spot gold was up 1.1% at $4,559.07 per ounce, as ​of 0736 GMT. U.S. gold futures for June delivery gained 0.8% ​to $4,559.80.While U.S. President Donald Trump has warned that he was in ⁠no hurry to finalize a deal with Iran, investors seem to rely ​more on his Saturday statement that Washington and Iran had "largely negotiated" a memorandum ​of understanding on a peace deal that would reopen the Strait of Hormuz."Trump has been raising market hopes for some sort of deal with Iran, which could lead to the reopening ​of the Strait of Hormuz. That prospect has weighed on oil prices ​and, by extension, given gold a welcome lift from an inflation perspective," said Tim Waterer, chief ‌market ⁠analyst at KCM Trade.The U.S. will either have a good agreement with Iran or deal with the country "another way," Secretary of State Marco Rubio said on Monday.The dollar was around its lowest levels in a week, making greenback-priced bullion more ​affordable for holders ​of other currencies.Oil ⁠prices, which influence inflation expectations, hit two-week lows.Elevated crude can fuel inflation and keep interest rates higher for longer. While ​gold is seen as an inflation hedge, higher rates tend ​to weigh ⁠on the non-yielding metal.Kevin Warsh was sworn in as chair of the U.S. Federal Reserve on Friday at a pivotal moment for the American economy, where surging gasoline ⁠prices ​linked to the Iran war fuel inflation and ​erode consumer sentiment.Spot silver climbed 3.1% to $77.79 per ounce, platinum rose 2.3% to $1,966.59, and palladium was up 2.7% at $1,384.70.