Gold Prices Dip Amid Renewed US‑Iran Strikes
Spot gold fell 0.8% to $4,055.50 per ounce by 21:14 ET (01:14 GMT) during Asian trade on Monday, while gold futures declined 0.7% to $4,069.25 per ounce. The price drop occurred amid renewed strikes between the United States and Iran over the weekend, which strained an already tenuous cease‑fire. Although a report indicated that both sides had agreed to halt attacks and would meet for further talks later in the week, the geopolitical tension continued to weigh on the metal.
Gold had already approached an eight‑month low the previous week as markets priced in expectations of a Federal Reserve rate hike later in 2026. A recent US‑Iran peace deal had temporarily eased concerns about energy‑driven inflation, especially as oil prices fell sharply back to pre‑war levels, but the yellow metal remained under pressure from a strong US dollar and elevated Treasury yields. CME FedWatch data show that market participants assign over 30% probability to a Fed rate increase by the end of 2026, reinforcing the negative sentiment for non‑yielding assets.
Strong US inflation data and a hawkish signal from the Federal Reserve’s June meeting further heightened expectations of higher rates, which increase the opportunity cost of holding gold.
Other precious metals also weakened: spot silver dropped 1.3% to $58.4435 per ounce, and spot platinum fell 1.1% to $1,622.34 per ounce, reflecting broader weakness across the metals market.