Gold Prices Dip as Elevated Yields and Dollar Weigh On Safe-Haven Demand
Spot gold prices were modestly lower on Monday morning in the US, trading near $4,354.10 an ounce, down 0.52% on the session. The precious metal is being offset by elevated Treasury yields and a firmer dollar, despite safe-haven demand tied to U.S.-Iran tensions.
The Strait of Hormuz remains a central geopolitical risk premium for gold, oil, and tanker markets. Trackable commodity-vessel traffic through the strait fell to 17 ships over the weekend from 37 a week earlier, but some Middle East exports are still moving with transponders off.
Austan Goolsbee, Chicago Fed President, stated that supply shocks may force a 'painful trade-off' between employment and inflation, keeping rates market focused on whether oil, services inflation, and AI-related demand extend the tightening cycle. The FOMC raised the target range for the federal funds rate by 25 basis points to 3.75% to 4.00% last week.
Naeem Aslam, CIO of Zaye Capital Markets, framed the gold setup as a two-way pull between easing U.S.-China trade risk and persistent geopolitical stress tied to Iran, Russia sanctions, and security negotiations. His core point is that gold's safe-haven bid is still intact, but higher yields remain the principal force limiting a cleaner breakout above recent highs.