Gold prices fell by more than 1% on Monday as the U.S. dollar strengthened, while uncertainty surrounding peace talks between the United States and Iran pushed oil prices higher and reignited concerns over inflation.
Spot gold dropped 1.4% to $4,762.09 per ounce as of 00:55 GMT, after hitting its lowest level since April 13 earlier in the session.
U.S. gold futures for June delivery also declined by 2% to $4,781.90.
The dollar index rose, making gold—priced in the U.S. currency—more expensive for holders of other currencies.
Oil prices surged, and stock markets showed mixed performance as escalating tensions in the Middle East reduced shipping activity to and from the Gulf to a minimum, although traders had been hoping for a resolution.
The United States seized an Iranian cargo vessel that attempted to breach a blockade on Iranian ports. Tehran stated it would respond, increasing the likelihood that the ceasefire between the two countries may not hold for the remaining two days.
Iran also announced it would not participate in the second round of negotiations that the United States had hoped would begin Tuesday before the ceasefire expires.
Among other precious metals, spot silver fell 1.7% to $79.42 per ounce, platinum declined 0.8% to $2,086, and palladium dropped 0.8% to $1,547.10.
— Reuters
