New Delhi, July 27 -- Gold rose more than 1% in the international market on Monday as a pause in Middle East hostilities sent oil prices lower, alleviating some inflation concerns, while investors awaited the US Federal Reserve's policy decision.

Spot gold rose 1.4% to $4,110.56 per ounce by 0200 GMT. US gold futures gained 1% to $4,112.10. The US dollar index was down 0.3%, making greenback-priced metals more affordable for holders of other currencies.

The price of the yellow metal in India's retail market also rose, amid continued uncertainty and tensions between the United States and Iran. Both 24-karat and 22-karat gold rates are showing a marginal rise across major cities. Silver prices, on the other hand, also increased in the dom...