As of 7:28 GMT (ie 2:28 PM Vietnam time), spot gold prices increased by 0.1%, to 4,714.51 USD/ounce. Last week, this precious metal fell 2.5%, ending a 4-week consecutive rally.
Meanwhile, US gold futures for June delivery fell 0.2% to 4,729.40 USD/ounce.
The market is currently mainly observing whether negotiations between the US and Iran will make any progress in the coming days. This will be the biggest factor affecting gold prices," said Kyle Rodda, senior financial market analyst at Capital. com.
The weakening USD has supported gold prices, after information that Iran, through Pakistani intermediaries, sent the US a new proposal to reopen the Strait of Hormuz and end the war.
US President Donald Trump said on Sunday that Iran could call if it wants to negotiate to end the 2-month war. He also emphasized that Iran should never possess nuclear weapons.
Previously, Mr. Trump canceled the trip of two US special envoys to Pakistan - a country that plays a mediating role in the war with Iran - on Saturday, further hindering peace prospects.
Oil prices rose as stalled negotiations continued to prolong energy export disruptions in the Middle East.
Higher crude oil prices could increase inflation by pushing up transportation and production costs, thereby increasing the possibility of interest rates remaining high.
Although gold is often seen as an inflation hedging channel, the high interest rate environment makes profitable assets more attractive, thereby reducing the attractiveness of this precious metal.
Investors are currently awaiting the interest rate decision of the US Federal Reserve on Wednesday.
The Fed's decision may support gold prices, or become a greater drag, depending on whether the Fed signals to maintain monetary policy for the rest of the year, in the context of inflationary impacts from the energy crisis," Rodda said.
On other precious metals markets, spot silver prices increased by 0.1%, to $75.75/ounce. Platinum prices increased by 0.8%, reaching $206.85/ounce, while palladium fell 0.4% to $1,490.6/ounce.
The world gold and silver market operates through two main pricing mechanisms. The first is the spot market, where the buying and selling and immediate delivery prices are listed. The second is the futures market, where prices are set for future delivery.
Due to the impact of year-end position restructuring and market liquidity, the December gold futures contract is currently the most actively traded contract on the CME exchange.
