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Economy
Gold fell 0.6% on Monday after stalled US-Iran peace talks drove oil prices higher, stoking inflation fears that could keep interest rates elevated.
Gold prices dropped on Monday, as the failure to advance US-Iran peace negotiations sent oil prices climbing. The move reignited worries that persistent inflation would force central banks to maintain high interest rates for an extended period.
Spot gold slid 0.6% to $4,684.32 per ounce. US gold futures for June delivery lost 0.8%, settling at $4,692.70. A stronger dollar added to the pressure, making bullion more expensive for holders of other currencies.
On Sunday, US President Donald Trump rejected Iran’s response to an American proposal for peace talks. The move crushed expectations for a swift end to the 10-week conflict, which has caused widespread damage in Iran and Lebanon, paralyzed shipping through the Strait of Hormuz, and driven up global energy costs.
“We are essentially seeing hopes for an imminent (peace) deal evaporate,” said Tim Waterer, chief market analyst at KCM Trade. “Gold is feeling the weight of the renewed rise in crude oil prices.”
