Gold declines with the rise of the dollar and renewed tensions between America and Iran

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Gold declines with the rise of the dollar and renewed tensions between America and Iran

Gold prices fell today, Monday, as the value of the dollar rose, while news of the closure of The Strait of Hormuz again led to higher oil prices, reviving fears of inflation.

The price of gold in spot transactions fell by 0.7% to $4,794.21 per ounce, by 05:37 GMT, after hitting its lowest level since April 13 earlier in the session. US gold futures (June delivery) also fell by 1.3% to $4,813.70.

And US dollar, making gold, which is denominated in the US currency, more expensive for holders of other currencies, while benchmark 10-year US Treasury bond yields rose 0.6%.

Ilya Spivak, head of global macroeconomics at "Tastylive" For securities: "Gold prices fell today after indications emerged that the ceasefire between the United States and Iran, which the markets celebrated last week, was beginning to collapse."

He added: "This revived the familiar war trading dynamics that we had witnessed since the beginning of the conflict; Crude oil prices rose, which affected inflation expectations and pushed both revenues and the US dollar higher."

The United States detained an Iranian cargo ship that attempted to breach the blockade on Iranian ports, while Tehran announced that it would respond, which increases the possibility that the ceasefire between the two countries would not continue.

Tehran announced that it would not participate in a second round of negotiations that the United States had hoped to launch before the ceasefire ended on Tuesday.