Gold slipped to around $4,250 an ounce on Monday, nearing a seven-week low, as stalled US-Iran negotiations kept oil prices elevated and strengthened expectations of additional Federal Reserve tightening to rein in inflation. President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, saying Tehran had overplayed its hand, while noting that he expects talks to resume this week. Iran, for its part, said it would not soften its conditions for reopening the strategically vital waterway.
In the US, several Federal Reserve officials pointed to resilient economic growth and a robust labor market as reasons further interest rate hikes may be warranted. Cleveland Fed President Beth Hammack said those dynamics, along with concerns over government debt, are pushing long-term Treasury yields higher. Investors are now focused on the Fed’s preferred inflation gauge and key US employment data due this week, which could offer additional insight into the future path of monetary policy.
