Gold Extends Fall After Sharp Weekly Drop

Gold fell below $4,400 per ounce on Monday, extending its selloff into a fourth week as the ongoing Middle East conflict intensified inflation fears, while major economies face pressure to boost liquidity, including through gold sales, to offset the war’s impact. The Iran war shows little sign of easing, with President Donald Trump threatening strikes on Iranian power plants if the Strait of Hormuz is not reopened, while Tehran warned it would target key US and Israeli assets across the region if its energy facilities were hit. Last week, gold dropped over 10% as surging oil prices fueled inflation concerns, prompting markets to price in a prolonged pause or potential rate hikes from major central banks. Traders are increasingly betting on a possible Federal Reserve rate increase toward year-end amid fears of persistent inflation. The ECB, BOE and BOJ also kept rates unchanged last week but signaled readiness to tighten policy further if inflationary pressures persist.

Gold decreased 2.07% to 4395.94 USD/t.oz

Gold dropped below $4,400 per ounce on Monday after posting its steepest weekly decline since 1983, as investors continued to track developments in the ongoing Middle East conflict. The Iran war shows little sign of easing, with President Donald Trump threatening to strike Iranian power plants if the Strait of Hormuz is not reopened, while Tehran warned it would target key US and Israeli assets across the region if its energy facilities were hit. Last week, gold tumbled more than 10% as surging oil prices stoked inflation concerns, prompting markets to price in a prolonged pause or even potential rate hikes from major central banks. Traders are now increasingly betting on a possible Federal Reserve rate increase toward the end of the year amid fears of persistent inflation. The European Central Bank, Bank of England and Bank of Japan also kept rates unchanged last week but signaled readiness to tighten policy further if inflationary pressures endure.