Key Takeaways

• 6-week low hit: Spot gold touched $4,480.79/oz before recovering, while gold futures fell 0.5% to $4,540.67/oz.
• Spot gold dips slightly: Last at $4,538.79 per ounce after a turbulent session.
• Bond yields explode: U.S. 10-year Treasury yields hit a one-month high, while Japanese 10-year yields surged to a 29-year peak.
• Iran inflation fears: Markets fret that the prolonged war will fuel inflation and force hawkish central bank action.
• Dollar firms: A stronger greenback adds pressure on broader metals.
• Silver and platinum fall: Spot silver dropped 1.1% to $74.1810/oz, while platinum slipped 0.5% to $1,968.10/oz.
• “Clock is ticking”: Trump’s warning to Iran continues to keep tensions elevated.
• Barakah drone strike: The UAE attack on the nuclear plant was attributed to Iran — marking potential escalation.
• Renewed strikes weighed: The U.S. and Israel are reportedly considering more military action.
• Trump-Xi summit limits: Last week’s meeting provided little progress on Iran beyond vague trade agreements.
• Persistent underperformance: Gold has lagged since the war began as rate fears overshadow safe-haven appeal.

Gold prices hit a 1½-month low in Asian trade on Monday as rising global yields and elevated tensions between the United States and Iran weighed on metal prices.

While the yellow metal did recoup a bulk of its intraday losses, it remained under continued pressure from concerns over inflation and interest rates.

Spot gold slipped slightly to $4,538.79 an ounce by 01:13 ET (05:13 GMT), while gold futures fell 0.5% to $4,540.67 per ounce.

Spot prices hit an intraday low of $4,480.79 per ounce.

Gold Pressured by Iran Inflation Concerns, Bond Sell-Off

Gold remained on the back foot amid surging yields across the developed world, as markets fretted over the inflationary impact of a prolonged war in the Middle East.

U.S. 10-year Treasury yields were perched at a one-month high, while Japanese 10-year yields hit a 29-year high on Monday, with investors steadily selling down government debt.

Yields surged amid growing bets that energy-driven inflation — stemming from the Iran war — will drive interest rates higher and prompt more hawkish central banks across the globe.

Such a scenario bodes poorly for gold, given that rising interest rates increase the opportunity cost of investing in the yellow metal.

The dollar firmed on this notion, pressuring broader metal prices, although they also trimmed some of their intraday losses. Spot silver fell 1.1% to $74.1810 per ounce, while spot platinum fell 0.5% to $1,968.10 per ounce.

Iran Tensions Continue to Boil

Tensions between the United States and Iran remained high, with President Donald Trump warning that the “clock was ticking” for Tehran to accept a peace deal.

A drone strike near the United Arab Emirate’s Barakah nuclear plant was attributed to Iran, and marked a potential escalation in the conflict.

The U.S. and Israel were seen considering renewed military action against Iran, especially as negotiations over a peace deal yielded few results.

Trump’s summit in China also provided little progress on Iran. The world’s two largest economies said they had reached some trade agreements after last week’s summit, but did not provide clear details.

Gold has largely underperformed since the onset of the U.S.-Israel war on Iran, as concerns over rising interest rates vastly overshadowed the yellow metal’s safe-haven appeal.