Gold Prices Flat as Real Yields Rise and Iran Tensions Ease

Gold prices continued their recent trend of volatility on Monday, opening at $4,135.20 per troy ounce before slipping to $4,111.50 by 7:58 a.m. ET.

The metal's response to the de-escalation of tensions between the US and Iran was muted, with prices failing to rally despite the removal of a key headwind in the form of higher crude oil prices.

A bearish force for gold in recent months has been the Iran conflict, which has driven up inflation expectations and led to rate projections that have crushed the non-yielding metal.

With real yields climbing toward 2.08%, a level that has historically capped bullion, gold's correlation with real yields is negatively impacted, making it difficult for prices to rise despite central bank actions on the physical side.