Gold prices continue to decline under pressure from the dollar and rising oil prices
Gold prices fell to their lowest level in about a week, on Monday, affected by the strength of the dollar, while rising oil prices following the failure of US-Iranian peace talks fueled fears of inflation and decreased expectations of interest rate cuts by the Federal Reserve this year.The price of gold in spot transactions rose 0.4% to $4,726.64 per ounce, by 06:20 GMT, after hitting its lowest level since April 7 earlier in the day at $4,643. US gold futures (June delivery) also fell by 0.8% to $4748.70.
In the other precious metals market, the price of silver fell 1.9% to $74.41 per ounce, platinum lost 0.2% to $2041.89, while palladium gained 0.5% to $1527.95.
On the other hand, the index rose. The US dollar rose by 0.3%, and oil prices returned above $100 per barrel, at a time when the US Navy is preparing to impose a blockade on the Strait of Hormuz to restrict Iranian oil shipments.
Reported The Iranian Revolutionary Guard warned that the approach of military ships to the strait will be considered a violation of the ceasefire and will be dealt with strictly and firmly.
At the monetary policy level, traders now see the chances of a US interest rate cut this year becoming slim, as higher energy prices threaten to stoke broader inflation and limit the scope of monetary easing. Expectations, before the outbreak of war in the Middle East, indicated two interest rate cuts by the Federal Reserve this year.
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