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Gold prices rose further on Monday, as heightened U.S.-Iran tensions as well as dovish signals from global central banks bolstered demand for the safe-haven metal.

Spot gold rose 0.75 percent to $1,410.65 per ounce, heading for a fifth straight session of gains and hovering close to a six-year high touched on Friday. U.S. gold futures were up 0.8 percent at $1,410.85 per ounce.

U.S. Secretary of State Mike Pompeo said "significant" sanctions on Iran would be announced aimed at further choking off resources that Tehran uses to fund its activities in the region.

On the other hand, U.S. President Donald Trump said on Sunday he was not seeking war with Tehran and is prepared to seek a deal to bolster Iran's flagging economy in an apparent move to defuse tensions.

The U.S. dollar fell against its rivals on expectations the Federal Reserve may cut interest rates soon to bolster the world's largest economy.

The Fed signaled a dovish outlook on monetary policy last week, with bond markets expecting the U.S. central bank to cut interest rates by 75 basis points through the end of the year.

The European Central Bank also looks set to continue its stimulus program to counter a global economic slowdown, exacerbated by global trade tensions.