Gold prices moved higher over the weekend as a pause in the US-Iran conflict reduced concerns over oil supply risks and inflation.

In early trading, gold prices rose by 1.1%, nearing the $4,100 per ounce mark.

The United States halted its nearly two-week military campaign against Iran without providing any explanation or official statement. At the same time, Iran indicated it would not retaliate and initiated talks with Oman regarding shipping routes through the Strait of Hormuz.

Oil prices opened sharply lower this week, with the global benchmark Brent crude falling more than 7% within minutes of the opening bell, briefly dipping below $90 per barrel.

Since late June, gold has mostly traded around the $4,000 per ounce level, which some traders view as a key support point. The precious metal has fallen more than 20% since the US and Israel launched attacks on Iran in late February. Prior to that, a multi-year bull run had pushed gold to an all-time high of nearly $5,600 per ounce in the month before hostilities began.

The renewed outbreak of Middle East conflict last month, following the breakdown of a temporary ceasefire, has intensified inflationary pressures in recent weeks. This has increased the likelihood of the Federal Reserve raising interest rates, which has been a negative factor for non-yielding gold.

Spot gold gained 0.8% to reach $4,085.81 per ounce. Silver rose 2.1% to $59.37 per ounce. Prices for both platinum and palladium also moved higher.