Trump's Rejection Sparks Oil Price Surge Amid Inflation Fears

Oil prices have surged on Monday, affecting US stock markets and bullion prices. Brent crude reached $101 per barrel in the morning, while US crude oil futures rose by about 2%. The increase is attributed to US President Donald Trump's rejection of an Iran peace proposal, which has heightened tensions in the Middle East.

The rising oil prices have also led to inflation fears and a decline in bullion prices. Spot gold fell 3.1% to $4,155.67 per ounce, while spot silver dropped 4.6% to $61.32 per ounce. Platinum lost 2.4% to reach $1,735.95, and palladium declined by 3.4% to touch $1,224.39.

Giovanni Staunovo, an analyst at UBS, attributed gold's recent weakness to higher oil prices and the increased probability of further US rate hikes. He stated that this backdrop could keep US real yields and the US dollar elevated, making it more expensive to hold non-yielding gold.