Gold Prices Decline Amid Rising Dollar, Oil, and Iran Decision Awaited

Gold prices saw a slight decline today, Monday, pressured by a stronger U.S. dollar and rising oil prices, as investors await President Donald Trump's decision regarding a proposed agreement to extend the ceasefire with Iran. By 01:56 GMT, spot gold fell 0.2% to $4527.36 per ounce, after reaching a two-week high in the previous session. U.S. gold futures also decreased by 0.8% to $4558.10. A stronger dollar makes gold, priced in the U.S. currency, more expensive for holders of other currencies. U.S. President Donald Trump announced on Friday that he would soon make a decision on a proposed deal to extend a ceasefire with Iran, despite ongoing fundamental disagreements between the two sides on pivotal issues in the conflict. In a related development, Israeli Prime Minister Benjamin Netanyahu on Sunday ordered forces to increase incursions into Lebanon as part of a campaign against Hezbollah, despite a ceasefire announced more than six weeks ago. Oil prices surged by over 2% in early trading today, Monday, raising concerns about escalating inflation rates. In this context, Michelle Bowman, Vice Chair for Supervision at the Federal Reserve (U.S. central bank), stated on Friday that the impact of the Middle East conflict on the economy, while still being assessed, could lead to sustained inflation that might necessitate a more restrictive monetary policy. Gold demand in India remained weak last week due to higher prices and import duties, while premiums in China, the world's largest gold consumer, narrowed amid caution. As for other precious metals, spot silver rose 0.4% to $75.54 per ounce, platinum increased 1% to $1935.65, and palladium climbed 1.3% to $1371.24.