Gold Extends Fall on Middle East Escalation

Gold slipped below $4,300 an ounce on Monday, falling to its lowest level in more than two months after Iran and Israel exchanged missile strikes, raising concerns that the latest escalation could undermine President Donald Trump's efforts to secure a new 60-day ceasefire agreement with Tehran. Trump urged both sides to avoid further military action and reiterated that negotiations remain ongoing. Meanwhile, the prolonged conflict and the continued near-closure of the Strait of Hormuz have disrupted energy supplies from the Persian Gulf, supporting higher oil prices and heightening inflation concerns. At the same time, stronger-than-expected US employment data weighed on bullion by reinforcing expectations that the Federal Reserve could raise interest rates later this year. Markets are now pricing in roughly a 70% chance of a Fed rate hike in December, up from around 50% before the jobs report.

Gold traded near $4,300 an ounce on Monday after tumbling nearly 5% last week to its lowest level in more than two months, as renewed tensions in the Middle East drove oil prices higher and fueled concerns about inflation and interest rates. Iran launched several rounds of missiles toward Israel in a warning against further military actions in Lebanon, though Israel's military said all the projectiles were intercepted and no casualties were reported. The prolonged conflict and the continued near-closure of the Strait of Hormuz have disrupted energy supplies from the Persian Gulf, supporting higher oil prices and intensifying inflation concerns. At the same time, stronger-than-expected US employment data weighed on bullion last week by reinforcing expectations that the Federal Reserve could raise interest rates later this year. Markets are now pricing in roughly a 70% chance of a Fed rate hike in December, up from around 50% before the jobs report.

Gold decreased to 4366.00 USD/t.oz, the lowest since March 2026. Over the past 4 weeks, Gold lost 6.79%, and in the last 12 months, it increased 32.05%.