Gold nudged lower on Monday, on inflation worries that clouded the U.S. monetary policy outlook, while markets awaited developments in U.S.-Iran negotiations.<\/p>\n
Brendon Thorne | Bloomberg | Getty Images<\/p>\n
Gold\u00a0prices nudged lower in thin trade on Monday, weighed down by inflation worries that clouded the U.S. monetary policy outlook, while markets awaited developments in U.S.-Iran peace negotiations.<\/p>\n
Spot\u00a0gold<\/a>\u00a0was down 0.2% at $4,606.38 per ounce, as of 0307 GMT. U.S.\u00a0gold\u00a0futures<\/a>\u00a0for June delivery fell 0.6% to $4,617.40.<\/p>\n Markets in China, Japan and the UK are closed for holidays.<\/p>\n Federal Reserve<\/a> Chair Jerome Powell closed out eight years as head of the U.S. central bank on Wednesday with interest rates\u00a0on hold\u00a0and rising concern about inflation.<\/p>\n “Gold\u00a0is still feeling the lingering effects of last week’s hawkish Fed messaging, particularly the notable dissenting voices pushing back against further easing,” said Tim Waterer, chief market analyst at KCM Trade.<\/p>\n Federal Reserve officials, who dissented against the policy\u00a0statement\u00a0last week, said the oil price shock from Iran war means the U.S.\u00a0central\u00a0bank should be clear it can no longer lean towards interest rate cuts, with a rise in borrowing costs possible in the future.<\/p>\n Increasing oil prices could encourage central banks to hold interest rates higher for longer, which would pressure non-yielding assets such as\u00a0gold\u00a0as investors turn to alternate options like Treasury yields that offer better returns.<\/p>\n Oil prices eased but held above $100 a barrel, with the lack of clarity around a potential U.S.-Iran peace deal remaining in focus.<\/p>\n A tanker\u00a0reported\u00a0being hit by unknown projectiles in the Strait of Hormuz, a maritime security organization said on Monday, shortly after U.S. President Donald Trump said Washington\u00a0would start helping free ships stranded in the Gulf by the U.S.-Israeli war on Iran.<\/p>\n Iranian state media reported that Washington conveyed its response to Iran’s 14-point proposal via Pakistan, and that Tehran was now reviewing it.<\/p>\n “We see\u00a0gold\u00a0largely trading in a $4,400-$5,500 range by year-end. The upper end of that range would require a durable reduction in Middle East tensions and some easing of inflation pressures, while persistent high oil prices would keep the metal toward the lower half of the range,” Waterer added.<\/p>\n Spot silver<\/a>\u00a0rose 0.5% to $75.69 per ounce, platinum<\/a>\u00a0XPT=\u00a0gained 0.8% to $2,003.90, and palladium<\/a>\u00a0was up 0.5% at $1,532.87.<\/p>\n