Key Takeaways

• Gold retreats: Spot gold slipped 1% to $4,669.82 per ounce, while U.S. gold futures eased 1.1% to $4,678.31.
• Weekly winner reverses: Bullion climbed more than 2% last week on peace deal hopes before Monday’s pullback.
• Trump’s bombshell: The president called Iran’s response to Washington’s peace framework “totally unacceptable.”
• Iran’s red lines: Tehran refused to dismantle nuclear facilities or suspend uranium enrichment for 20 years, per the WSJ.
• Counter-proposal details: Iran offered to end the war, gradually reopen Hormuz, and accept dilution of some enriched uranium plus transfer of the rest to a third country.
• Oil surges 5%: Crude prices rocketed higher in early trade amid the continued Hormuz closure.
• Inflation fears return: Higher oil prices reinforce concerns central banks will keep rates higher for longer — bad news for non-yielding gold.
• Dollar firms: Strong U.S. jobs data last week boosted bets the Fed will delay rate cuts; DXY rose 0.2% in Asian hours.
• Trump-Xi summit ahead: Trump’s China visit this week will likely cover Iran, trade, and global energy security.
• Silver edges up: Silver prices rose 0.2% to $80.51 per ounce.
• Platinum drops: Platinum declined 1.4% to $2,030.04 per ounce.
• Copper firms: LME copper edged up 0.3% to $13,608.33 per ton.

Gold prices fell during Asian trading on Monday after posting solid weekly gains, as surging oil prices and a stronger U.S. dollar dented bullion’s appeal following President Donald Trump’s rejection of Iran’s response to a U.S. peace proposal.

Spot gold slipped 1% to $4,669.82 per ounce by 02:35 ET (06:35 GMT), while U.S. gold futures also eased 1.1% to $4,678.31.

The yellow metal had climbed more than 2% last week on building U.S.-Iran peace deal hopes.

Trump Rejects Iran’s Response; Oil Surges as Hormuz Remains Shut

President Trump described Tehran’s latest response to Washington’s peace framework as “totally unacceptable,” dampening hopes for a near-term breakthrough in U.S.-Iran negotiations.

Tehran has refused U.S. demands to dismantle its nuclear facilities and would not suspend uranium enrichment for 20 years, the Wall Street Journal reported.

In its multi-page counter-proposal, Iran proposed an end to the war and a gradual reopening of the Strait of Hormuz to commercial vessels, with the U.S. also lifting its blockade of Iranian ships.

The report added that Tehran accepted that some of its highly enriched uranium would be diluted and the rest transferred to a third country.

Oil prices surged nearly 5% in early trade amid the continued Strait of Hormuz closure.

Higher oil prices reinforced concerns that inflation could remain elevated globally, potentially forcing central banks — including the U.S. Federal Reserve — to keep interest rates higher for longer. That dynamic reduced demand for non-yielding assets such as gold.

Trump-Xi Meeting Scheduled This Week

The dollar also strengthened in Asian trade after stronger-than-expected U.S. payrolls data last week reinforced expectations that the Fed would delay rate cuts. A firmer dollar makes gold more expensive for holders of other currencies.

The U.S. Dollar Index traded 0.2% higher in Asian hours.

Investor focus is now turning to upcoming U.S. inflation data and Trump’s visit to China later this week, where discussions with Chinese President Xi Jinping are expected to include Iran, trade, and global energy security.

Among other precious metals, silver prices edged up 0.2% to $80.51 per ounce, while platinum declined 1.4% to $2,030.04 per ounce.

Benchmark copper futures on the London Metal Exchange edged up 0.3% to $13,608.33 a ton, while U.S. copper futures rose 0.4% to $6.32 a pound.