(RTTNews) – Gold prices were little changed on Monday, after hitting their lowest in more than a month and a half at the start of the session, amid rising tensions in the Middle East and inflation concerns.
Spot gold rose marginally to $4,543.66 an ounce, while US gold futures slipped 0.3 percent to $4,547.97.
Brent crude futures traded above $110 a barrel, building on last week’s gains as the continued closure of the Strait of Hormuz heightened supply concerns.
US-Iran tensions escalated after US President Donald Trump warned on Sunday that “time is running out” for Iran and they had better move fast or they would be left with nothing.
According to Iran’s Fars News Agency, the US has demanded a permanent halt to uranium enrichment and handing over its enriched uranium reserves.
The US has refused to pay any war compensation and wants only one operating nuclear facility to remain in the Islamic Republic.
Iran has been insisting that it will return to talks only if Israel’s ongoing war with Hezbollah in Lebanon ends, its sovereignty over the vital Strait of Hormuz corridor is recognized, compensation demands are met, sanctions on Iran are lifted and its frozen foreign assets are released.
A drone attack caused a fire at a nuclear power plant in the United Arab Emirates and Saudi Arabia reported intercepting three drones, escalating regional tensions.
Several Federal Reserve officials recently stressed that controlling inflation is their top priority and that interest rates could be raised if price pressures persist.
The US dollar held its ground against major currencies and the yield on 10-year US Treasury notes rose to its highest level since February 2025 amid expectations that the Federal Reserve could raise interest rates later this year. Traders currently see a 40 percent chance of a Fed rate hike in December, according to CME Group’s FedWatch tool.
The minutes of the Fed’s last meeting on Wednesday may reveal how much pressure was on the committee to change its neutral stance.
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