Gold fell on Monday, as stalled U.S.\u2013Iran negotiations pushed oil higher, fueling concerns of elevated inflation keeping interest rates higher for longer.<\/p>\n
Edgar Su | Reuters<\/p>\n
Gold\u00a0prices fell on Monday, as a lack of progress in U.S.\u2013Iran peace negotiations pushed oil prices higher, fueling concerns that elevated inflation could keep interest rates higher for longer.<\/p>\n
Spot\u00a0gold<\/a>\u00a0fell 0.6% at $4,684.32 per ounce, as of 0223 GMT. U.S.\u00a0gold\u00a0futures<\/a>\u00a0for June delivery lost 0.8% at $4,692.70.<\/p>\n The dollar firmed, making greenback-priced bullion more expensive for holders of other currencies.<\/p>\n U.S. President Donald Trump on Sunday\u00a0rejected\u00a0Iran’s response to a U.S. proposal for peace talks, dashing hopes for an imminent end to the 10-week-old conflict that has caused widespread damage in Iran and Lebanon, paralyzed maritime traffic in the Strait of Hormuz, and driven up global energy prices.<\/p>\n “We’re essentially seeing an unwinding of hopes for an imminent (peace) deal, and\u00a0gold\u00a0is feeling the pinch from the renewed rise in crude prices,” said Tim Waterer, chief market analyst at KCM Trade.<\/p>\n Oil prices jumped as the Strait of Hormuz remained largely closed, keeping global energy supplies tight.<\/p>\n Rising crude oil prices risk pushing inflation higher, increasing the prospects of elevated interest rates. While\u00a0gold\u00a0is traditionally seen as a hedge against inflation, high interest rates tend to weigh on the non-yielding asset.<\/p>\n The ongoing war with Iran and its shock to oil prices and supplies have rocketed to the top of the list of\u00a0concerns\u00a0for financial stability, according to a semi-annual Federal Reserve<\/a> report released on Friday.<\/p>\n Investors are now looking out for April’s U.S. Consumer Price Index data, due later this week, for further clues on the Fed’s monetary policy direction.<\/p>\n Meanwhile, China’s\u00a0gold\u00a0production\u00a0fell in the first quarter of 2026 from a year earlier, the China\u00a0Gold\u00a0Association said on Saturday, as safety inspections led some smelters to suspend production for maintenance.<\/p>\n “In the near-to-medium term, the $4,400 to $4,800 range still looks firmly in play while we remain in this ceasefire-without-a-peace-deal stalemate,” Waterer added.<\/p>\n Spot silver<\/a>\u00a0rose 0.7% at $80.88 per ounce, platinum<\/a>\u00a0slid 0.6% to $2,042.71, and palladium<\/a>\u00a0was down 0.4% at $1,484.99.<\/p>\n