Gold Prices Drop Amid Escalating Middle East Tensions
Gold prices declined on Monday as investors focused on developments in the Middle East and their potential impact on inflation and interest rates.
The tensions between Iran and the US escalated, with President Donald Trump warning that Iran would face economic ruin or leadership overthrow if it didn't make a deal, while the Iranian military threatened harsh retaliation to any new attack.
Spot gold fell 0.5% to $4,354.30 per ounce by 0648 GMT after reaching a one-week high on Friday. US gold futures also dropped 0.8% to $4,391.50.
According to Tim Waterer, chief market analyst at KCM Trade, 'The focus remains on geopolitics, oil and the reaction in bond yields. For gold to gain meaningful upside traction, a clear move lower in oil and/or bond yields is likely required.'