Gold Prices Dip Amid Dollar Strength, Oil Gains, and Trump’s Decision

Gold prices experienced a modest decline on Monday, pressured by a stronger dollar and rising oil prices, as investors awaited a decision from US President Donald Trump regarding a proposed extension of the ceasefire agreement with Iran.

On Friday, President Trump stated he would soon decide on the proposed extension of the ceasefire with Iran, despite ongoing disagreements between the two sides over key issues in the conflict.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu ordered forces on Sunday to intensify incursions into Lebanon as part of the campaign against the Iran-backed Hezbollah militant group, despite a ceasefire that has been in place for over six weeks.

Oil prices climbed more than 2% in early trading on Monday, raising concerns about inflationary pressures.

Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, commented on Friday that although the economic impact of the Middle East war remains under assessment, it could lead to sustained inflation increases potentially requiring tighter monetary policy.

By 05:56 Abu Dhabi time, spot gold prices had dropped 0.2% to $4,527.36 per ounce, following a rise to a two-week high in the previous session.

US gold futures decreased by 0.8% to $4,558.10.

The dollar’s appreciation increased the cost of gold priced in US currency for holders of other currencies.

Gold demand in India remained weak last week due to high prices and import duties, while premiums in China—the world’s largest gold consumer—shrank amid cautious market sentiment.

Precious Metals Market Movements

Other precious metals saw gains in spot trading: silver increased by 0.4% to $75.54 per ounce, platinum rose 1% to $1,935.65, and palladium advanced 1.3% to $1,371.24.