Global gold prices fell on Monday as escalating conflict in the Middle East pushed Brent crude above $90 a barrel, intensifying concerns over inflation. At the same time, several U.S. Federal Reserve policymakers indicated that further interest rate hikes may be needed to contain price pressures.
Spot gold declined 0.4% to $4,000.55 per ounce by 00:58 GMT, after hitting its lowest level in two weeks on Friday and posting a 2.5% weekly loss. U.S. gold futures for August delivery slipped 0.3% to $4,005.90 per ounce.
Asian markets traded mixed on Monday at the start of a week packed with earnings reports from major technology companies, which are expected to provide another test of investor confidence in the momentum of the artificial intelligence sector.
Meanwhile, oil prices surged 3%, with Brent crude climbing above $90 per barrel.
Brent crude futures rose $2.69, or 3.05%, to $90.79 per barrel by 23:43 GMT, their highest level since June 11. The benchmark extended last week’s rally after gaining 15.9%, its strongest weekly performance since April.
The U.S. Central Command (CENTCOM) announced early Monday that it had successfully completed its ninth consecutive night of strikes against Iran.
According to CENTCOM, U.S. forces targeted Iranian military command centers, air defense and coastal surveillance sites, naval capabilities, missile and drone launch facilities, and communications networks in an effort to reduce Iran’s ability to attack commercial vessels and civilian mariners transiting the Strait of Hormuz.
Among other precious metals, spot silver gained 0.9% to $56.42 per ounce, platinum edged up 0.1% to $1,592.97 per ounce, and palladium rose 0.3% to $1,251.74 per ounce.
