Gold subdued as dollar gains, markets await Iran response
Gold prices edged lower on Monday as investors favoured the dollar following the US attack on key Iranian nuclear sites over the weekend, with markets closely watching for Iran's response.
Spot gold was down 0.2% at $3,362.29 an ounce, as of 0341 GMT.
US gold futures fell 0.2% to $3,378.
'The US strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market,' KCM Trade Chief Market Analyst Tim Waterer said.
'This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict.'
The dollar rose rose 0.2% against its rivals, making gold more expensive for other currency holders.
US President Donald Trump on Sunday raised the question of a regime change in Iran following US strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation.
Iran vowed to defend itself a day after the US dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site.
Meanwhile, Iran and Israel continued to trade volleys of missile attacks.
An Israeli military spokesperson said Israeli fighter jets had struck military targets in western Iran.
Gold price per tola gains Rs1,465 in Pakistan
Shares slipped in Asia on Monday and oil prices briefly hit five-month highs, but there were no signs of panic selling across markets.
The Federal Reserve's latest monetary policy report to Congress, released on Friday, said US inflation remained somewhat elevated and the labor market was solid.
On the technical front, spot gold may retest support at $3,348 per ounce, a break below could open the way toward $3,324, according to Reuters technical analyst Wang Tao.
Elsewhere, spot silver rose 0.2% at $36.07 per ounce, platinum edged 0.1% higher to $1,269.17, while palladium gained 0.2% to $1,046.62.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Aluminium outperforms copper on energy cost concerns amid US-Iran tensions
SINGAPORE: Aluminium prices outperformed copper on Monday, with the most-traded contracts on the London and Shanghai exchanges surging, as US strikes on Iranian military sites drove up energy prices — a key cost factor for the energy-intensive metal. The LME three-month aluminium contract rose as much as 3.3% to $2,634.5 per metric ton, before easing to $2,580.50, up 1.22%, by 0101 GMT. Meanwhile, the SHFE most-traded aluminium contract was up 0.54% at 20,525 yuan ($2,859.23) a ton. In comparison, LME copper gained 0.16% to $9,648.5, and SHFE copper was up 0.31% at 78,420 yuan. 'Aluminium is more energy-price sensitive, so it has reacted more strongly to oil prices, and now the key is whether Iran will shut down the Strait of Hormuz,' a Beijing-based metals analyst from a futures company said, requesting anonymity. LME official prices The Strait of Hormuz is crucial for bauxite and alumina shipments in the Middle East, and power accounts for 40% of the total cost in aluminium smelting, he said. US President Donald Trump on Sunday raised the question of regime change in Iran following US strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation. Brent crude futures were up 2.44% at $78.89 a barrel, as of 1122 GMT, the highest since January. LME zinc contract gained 0.5% to $2,643 a ton, lead inched up 0.1% to $1,994.5, and tin dipped 0.1% to $32,650. SHFE tin gained 1.2% to 263,950 yuan a ton, lead gained 0.4% to 16,925 yuan, and zinc went up 0.3% to 21,980 yuan.
Business Recorder
an hour ago
- Business Recorder
Indonesia central bank to continue interventions in FX markets to ensure rupiah reflect fundamentals, official says
JAKARTA: Indonesia central bank to continue intervening in the foreign currency markets to ensure the rupiah reflects its fundamentals, a bank official said on Monday after the rupiah had fallen to a fresh one-month low against the US dollar. The rupiah was down by about 0.5% on the day at 16,460 per dollar as of 0230 GMT, LSEG data showed. Indonesia central bank to give nearly $5 billion flexibility to banks to manage liquidity The depreciation occurred as investors sought to avoid riskier assets after the U.S attack on Iran's nuclear sites, Erwin Gunawan Hutapea, head of the monetary department at Bank Indonesia, told Reuters.
Business Recorder
an hour ago
- Business Recorder
Airlines weigh Middle East cancellations after US strikes in Iran strand thousands
Commercial airlines around the world on Monday were weighing how long to suspend Middle East flights after the US struck Iran. Singapore Airlines, one of the highest-profile in Asia, had called the situation 'fluid' on Sunday as it cancelled flights from Singapore to Dubai following a security assessment. The Middle East route has become more important for flights between Europe and Asia since Russian and Ukrainian airspace closed due to war, but flight tracking website FlightRadar24 showed empty space over Iran, Iraq, Syria and Israel. Air France KLM said on Sunday that it cancelled flights to and from Dubai and Riyadh on Sunday and Monday. British Airways, owned by IAG ICAG.L, also cancelled flights to and from Dubai and Doha for Sunday. It was still reviewing the situation, it said in a statement on Sunday evening, when asked about later flights. Missile and drone barrages in a growing number of conflict zones represent a high risk to airline traffic, and an organization that monitors flight risks, Safe Airspace, a website run by OPSGROUP, warned on Sunday that US attacks on Iran's nuclear sites could heighten the threat to American operators in the region. In the days before the US strikes, American Airlines suspended flights to Qatar and United Airlines did the same with flights to Dubai. Iran weighs retaliation against US for strikes on nuclear sites Airlines are also concerned about a potential spike in oil prices following the US attacks, which will increase the cost of jet fuel. Israel meanwhile is ramping up flights to help stranded travellers at home and abroad. The country's Airports Authority says that so-called rescue flights to the country would expand on Monday with 24 a day, although each flight would be limited to 50 passengers. Israeli airline El Al on Sunday said it had received applications to leave the country from about 25,000 people in about a day.
