(RTTNews) – Gold prices traded below $4,800 an ounce on Monday as the dollar strengthened and bond yields rose amid uncertainty over a second round of diplomatic talks between the United States and Iran.
Spot gold fell 0.8 percent to $4,795 an ounce, while US gold futures were down 1.4 percent at $4,813.14.
The dollar rose to its highest level in a week against major currencies and bond yields rose amid the ongoing standoff around the Strait of Hormuz, rekindling investor concerns about inflation and interest rates.
Hours after US President Donald Trump announced the delegation to Islamabad, Iran rejected participation in the second round of peace talks citing Washington’s excessive demands, unrealistic expectations, frequent changes in stance, repeated contradictions and continued naval blockade, which it considers a violation of the ceasefire.
Tehran closed the Strait of Hormuz due to the ongoing US blockade of its ports.
Earlier, two Indian-flagged ships were attacked by Iranian gunmen while attempting to pass through the shipping lane when it opened.
Tehran’s top military command has vowed to retaliate after US forces forcibly seized an Iranian-flagged cargo ship in the Gulf of Oman.
US President Donald Trump has threatened to bomb Iran’s power plants and bridges unless Iran accepts his conditions.
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