Gold Prices Slip as Geopolitics and Rate Outlook Take Center Stage
Gold prices dropped on Monday as investors focused on developments in the Middle East and their potential impact on inflation and interest rates. Spot gold fell 0.3% to $4,362.60 per ounce by 0417 GMT after reaching a one-week high on Friday.
US gold futures were down 0.6% at $4,400.20. The decline in gold prices comes as President Donald Trump warned Iran that it would fail economically or face its leadership being wiped out if it didn't make a deal, while the Iranian military said it would retaliate harshly to any fresh attack.
Tim Waterer, chief market analyst at KCM Trade, noted that 'the focus remains on geopolitics, oil and the reaction in bond yields.' He added that for gold to gain meaningful upside traction, a clear move lower in oil and/or bond yields is likely required. Gold may trade in a roughly $4,200 to $4,580 range in the near term.