Gold prices saw a slight decline on Monday as investors turned to the dollar following the U.S. airstrikes on significant Iranian nuclear sites over the weekend, prompting markets to closely monitor Iran’s potential response.
In Dubai, gold rates witnessed a decline, with 24-carat gold dropping to AED405.76 and 22-carat gold falling to AED375.68. Additionally, 21-carat gold decreased to AED358.59, while 18-carat gold fell to AED307.36.
Spot gold was down 0.2 percent at $3,362.29 an ounce, as of 03:41 GMT (currently trading above $3,360). U.S. gold futures declined 0.2 percent to $3,378 (currently trading above $3,374). “The U.S. strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market,” reported Reuters, citing Tim Waterer, KCM Trade chief market analyst .
“This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict.” The dollar rose 0.2 percent against its rivals, making gold more expensive for holders of other currencies. Shares slipped in Asia on Monday, and oil prices briefly reached five-month highs, but there were no indications of panic selling across the markets.
Fed’s influence on investor sentiment
The Federal Reserve‘s latest monetary policy report to Congress, released on Friday, indicated that U.S. inflation remained somewhat elevated and the labor market remained solid. On the technical front, spot gold may retest support at $3,348 per ounce; a break below could pave the way toward $3,324, according to Reuters technical analyst Wang Tao.
Elsewhere, spot silver rose 0.2 percent to $36.07 per ounce, platinum edged up 0.1 percent to $1,269.17, while palladium gained 0.2 percent to $1,046.62.
Gold prices dipped on Friday and were poised for a weekly decline, as a stronger dollar and expectations of fewer U.S. interest rate cuts weighed on investor sentiment, despite escalating geopolitical risks in the Middle East.
In Dubai, gold rates pulled back again, with 24-carat gold declining AED1.75 to AED404.25, and 22-carat gold losing AED1.75 to AED374.25. Additionally, 21-carat gold and 18-carat gold dipped AED1.5 to AED359 and AED307.5, respectively.
Globally, spot gold fell 0.57 percent to $3,354.49 as of 4:12 GMT, marking a 2.2 percent decline for the week. Meanwhile, U.S. gold futures dipped 1.09 percent to $3,370.92.
