(RTTNews) – Gold prices fell below $4,500 an ounce on Monday as US-Iran talks stalled, with the two sides exchanging messages over the weekend seeking changes to a draft agreement aimed at prolonging the ceasefire and opening the Strait of Hormuz.
Spot gold fell 0.9 percent to $4,497.08 an ounce, while US gold futures for August delivery were down 1.5 percent at $4,525.92.
Investors reassessed expectations for a breakthrough in US-Iran talks amid a renewed exchange of military strikes between the United States and Iran.
The US said it carried out “self-defense strikes” on radar and command positions in Iran over the weekend.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said it targeted an airbase reportedly used in the US attack on a telecommunications tower on Sirik Island in the southern Hormozgan province.
Differences remain between Tehran and Washington over the removal of highly enriched uranium and the reopening of the Strait of Hormuz.
US President Donald Trump said Washington was close to achieving a nuclear deal with Iran, but Tehran insisted such matters were not under discussion at the moment.
Iran has reasserted control over the Strait of Hormuz, announcing that all ships must travel through designated routes and obtain permission from the Islamic Revolutionary Guard Corps Navy.
Addressing an online parliamentary session, Iranian Parliament Speaker Mohammad Baqer Ghalibaf stressed that Iranian negotiators have no confidence in the enemy’s words and promises.
The speaker said that Tehran will not agree to any deal with the US until the rights of the Iranian people are protected.
Elsewhere, Israel ordered troops to advance into Lebanon, expanding its ground offensive in the battle with the Iran-backed Hezbollah militant group.
US Defense Secretary Pete Hegseth has said that Washington is prepared to resume military strikes on Iran if a deal cannot be reached.
The dollar was steady after small weekly losses. Bond yields remain high Japanese bond yields hit their highest level in 40 years after reports that the Japanese government is preparing a supplemental budget of about 3 trillion yen, or about $19 billion, to help households with the cost of living.
In upcoming economic releases, traders are looking forward to speeches from several Federal Reserve officials this week as well as key US manufacturing and May payrolls reports for new clues on the Federal Reserve’s rate trajectory.
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