Gold Prices Slide Amid Escalating Tensions with Iran
Gold prices slid by 0.3% to $4,362.60 per ounce on Monday as market participants focused on Middle Eastern developments and their impact on inflation and interest rates.
The spot price of gold had reached a one-week high on Friday but failed to maintain its momentum due to escalating tensions between Iran and the US.
US President Donald Trump issued a warning that Iran would either fail economically or see its leadership wiped out if it didn't make a deal, while Iranian military officials vowed harsh retaliation against any fresh attacks.
'The focus remains on geopolitics, oil, and bond yields,' said Tim Waterer, chief market analyst at KCM Trade. 'For gold to gain meaningful upside traction, a clear move lower in oil and/or bond yields is likely required.'
Oil prices did fall on hopes that diplomatic efforts would get a chance this week amid a UN meeting.