Gold Falls Amid Easing Inflation Concerns

Despite easing concerns over inflation and interest rate hikes, gold has declined. The US suspended attacks on Iran late Friday following nearly two weeks of hostilities, but the country remains prepared to resume military strikes if negotiations collapse, according to Trump.

Traders are turning their attention to the Federal Reserve's upcoming policy decision this week, where central bank officials are expected to keep interest rates on hold. However, a minority of traders speculate that an immediate rate increase may be necessary due to lingering inflationary pressures.

The prevailing consensus suggests any potential hike would likely be deferred until September. Central banks added 1,136 tonnes of gold worth around $70 billion to their reserves in 2022, the highest yearly purchase since records began.