Gold cheaper amid stable dollar and Iran tensions - Reuters
Kyiv • UNN
The price of gold fell due to the strengthening of the US dollar amid expectations of Iran's response to US airstrikes on its nuclear facilities. Investors are closely monitoring geopolitical tensions in the Middle East.
On Monday, gold prices fell due to a strengthening US dollar. Markets remain cautious, awaiting a potential Iranian response to US airstrikes on its nuclear facilities. UNN reports this with reference to Reuters.
Details
As of 08:20 GMT, the spot price of gold fell by 0.2% to 3,359 dollars 99 cents per ounce. US gold futures lost 0.3%, falling to 3,375 dollars 20 cents.
The US dollar rose by 0.4% against major world currencies, making gold more expensive for investors using other currencies.
Higher energy prices could potentially delay the Fed's rate cut and strengthen the dollar. Numerous geopolitical uncertainties are likely to continue to support and prevent a deeper price correction
Tensions in the Middle East are growing: Iran and Israel exchanged air and missile strikes. Global markets are closely monitoring Tehran's reaction after the US attacked the Fordow nuclear facility, dropping 30,000-pound bunker-buster bombs. In response, Iran vowed to defend itself.
US President Donald Trump hinted at a possible regime change in the Islamic Republic, which only increased uncertainty for global markets, according to Reuters analysts.
Additionally
US airstrikes on Iran earlier in the week added tension to the overall inflation outlook and economic activity expectations. This comes ahead of important economic publications and Federal Reserve Chairman Jerome Powell's testimony to Congress.
Last week, the Fed kept the key interest rate unchanged, but adjusted its forecast for future cuts. Investors now expect a 50 basis point rate cut by the end of the year, starting in October.
Bullion traditionally performs better in conditions of low rates and financial turbulence.
Prices for other metals
As of morning, silver rose in price by 0.4% to 36 dollars 12 cents per ounce. Platinum rose by 2.3% to 1,293 dollars 90 cents. Palladium added 2.5% to 1,070 dollars 33 cents.