Gold Price Falls Amid Inflation Worries, Stronger Dollar, and US-Iran Tensions – Latest Gold Market News

Gold Prices Retreat to One-Week Low on Inflation and Dollar Strength

Gold prices fell to a one-week low on Monday. A strong U.S. dollar pushed gold down. Worries over rising prices added more strain. Spot gold slid 0.7% to $4,792.89 per ounce. Earlier, it hit a low last seen on April 13. June U.S. gold futures dropped 1.4% to $4,812.60. The stronger dollar now claims the safe-haven role. The greenback makes gold costlier for buyers who use other money. This change cut gold demand while price worries persist.

US-Iran Conflict Pushes Oil Higher, Inflation Risks Mount

A fight in the Middle East adds risk. The U.S. took an Iranian ship under a blockade. Iran warned it would strike back. The Strait of Hormuz, a key oil route, sees few ships. This cut oil traffic and raised risk.

Oil prices climbed more than 6%. Higher oil brings up energy costs and feeds price worries. Rising inflation makes many expect tighter steps by the U.S. Fed. That weakens the case for gold, which does not pay interest.

Safe-Haven Demand Favors Dollar Over Gold

Gold usually acts as a safe refuge when risk is high. Now, the U.S. dollar leads this role amid conflict. Yields on 10-year U.S. Treasury notes increased. Rising yields make gold less attractive when bonds pay more.

Experts say gold may stay below $5,000 per ounce as long as stress in the Middle East holds.

Central Bank Buying and Structural Demand Remain Supportive

Some support for gold comes from banks that buy it. Their actions help keep a price base. These buyers worry about local currencies losing value. Their buying helps gold, even when short-term pressure is strong.

Other metals fell too. Spot silver dropped 1.8% to $79.39 per ounce. Platinum fell 1.4% to $2,073.75. Palladium lost 1.1% to $1,542.25. ## Summary: Inflation and Dollar Strength Suppress Gold Prices Amid Heightened Geopolitical Risks

Gold now feels the strain from these points:

• A strong U.S. dollar now shifts safe funds away from gold.
• Increased oil prices, stirred by US-Iran strife, give a boost to inflation.
• Higher U.S. Treasury yields raise the cost of holding gold.
• Limited flow through the Strait of Hormuz puts more strain on oil.
• Steady buying by banks and worries over money values add base support.

This mix pushed gold to a weekly low as buyers balance price rise fears with global risk.

Reporting by Anjana Anil, Editing by Kevin Liffey for Reuters

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