Gold Retreats as Middle East Tensions and Rate Expectations Weigh on Market

Gold prices moved lower on Monday as renewed geopolitical uncertainty and persistent expectations of higher interest rates reduced demand for the non-yielding precious metal.

By 07:15 ET (11:15 GMT), spot gold had declined 1.3% to US$4,035.82 per ounce, while gold futures fell 1.1% to US$4,049.92 per ounce.

Reports indicated that the United States and Iran had agreed to suspend their recent exchanges of fire in the Strait of Hormuz, allowing commercial shipping to continue through the strategic waterway. However, according to The New York Times, citing a U.S. official, Iran has not yet formally confirmed the agreement.

The newspaper added that Washington and Tehran are expected to continue discussions on implementing a memorandum of understanding, while The Wall Street Journal reported that negotiations could resume in Doha, Qatar, as early as Tuesday. Axios was the first outlet to report the ceasefire agreement and renewed diplomatic talks.

Although crude oil prices stabilised close to pre-conflict levels, the latest military developments kept concerns over energy-driven inflation alive. Investors continue to expect that major central banks, including the Federal Reserve, coul

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/commodities/articles/gold-retreats-middle-east-tensions-132353289.html)