Markets, June 1 (SANA) Gold prices declined on Monday as a stronger US dollar and rising oil prices weighed on demand, while investors monitored geopolitical developments in the Middle East and their potential impact on inflation and US monetary policy.
Spot gold fell 0.4% to $4,518.09 an ounce at 0306 GMT, while US gold futures for August delivery dropped 1% to $4,548.90 an ounce. The metal was down 0.1% for the week.
The dollar’s strength made bullion more expensive for holders of other currencies, while oil prices rose more than 2% to above $93 a barrel, adding to inflation concerns linked to prolonged geopolitical tensions.
Markets are focused on US President Donald Trump’s expected decision on a proposal to extend a ceasefire between Iran and regional adversaries, as negotiations remain unresolved. A potential agreement could ease pressure on energy markets, while failure to reach a deal could keep oil prices elevated and sustain inflation risks.
Federal Reserve officials are also monitoring the situation, with Governor Michelle Bowman warning that sustained energy shocks could make inflation more persistent and influence the policy outlook. Higher inflation expectations tend to support higher bond yields, reducing the appeal of non-yielding assets such as gold.
Despite short-term pressure, analysts said gold could reach $5,500 by end-2026 if conditions align, including lower oil prices, a weaker dollar, central bank buying and sustained demand for hedging against inflation and geopolitical risk.
In other precious metals, silver rose 0.4% to $75.58 an ounce, platinum gained 1.1% to $1,937.30, and palladium advanced 1.2% to $1,370.50.
M.F / ABD
