Gold traded below $4,550 an ounce on Monday after sliding nearly 4% last week, as mounting evidence that the Middle East–driven energy price shock is feeding into broader inflation pressures bolstered expectations of further central bank tightening. The metal also came under pressure from strong gains in the US dollar and Treasury yields, after hotter‑than‑expected US inflation data prompted investors to rule out any Federal Reserve rate cuts this year and even speculate that policymakers could still raise rates before year-end.
At the same time, President Donald Trump warned that Tehran is running out of time to reach an agreement with Washington, while Iranian media reported that talks remain deadlocked, with the US offering “no tangible concessions.” Over the weekend, energy infrastructure in the Persian Gulf was also targeted, including a nuclear facility in the United Arab Emirates, further heightening geopolitical tensions in the region.
