Gold prices hit a six-week high in the New York trading session on Monday, aided by a lower dollar and geopolitical concerns following news of a European Union agreement today to impose an oil embargo on Iran.
Gold hit a high of $1,681.17 which is the highest level since December 12.
Other metals such as silver tracked gold higher as well today.
Recent interest in gold has also increased due to the Iran embargo concerns, with today’s news helping boost demand for the precious metal which is perceived as a safe haven.
In addition, the broadly weaker dollar is offering a further lift for gold since it is prices in USD.
The dollar index, which compares the U.S. unit to a basket of six currencies, traded at 79.678 from 80.148 in late North American trading Friday.
Earlier today, reports came out that the European Union imposed an oil embargo against Iran in an effort to get the Iranian authorities to scale back its nuclear program. The embargo includes a block in all gold trading and other precious metals as well as diamonds.
The embargo pushed oil higher, which provided an extra layer of support for gold and commodities in general. Oil traded 1.3% higher on Monday.