Gold price edged lower in Asian trading on Monday as safe-haven demand shifted toward the US dollar following America’s airstrikes on key Iranian nuclear facilities, marking a significant escalation in the Middle East conflict.
Spot gold slipped 0.2% to $3,360.11 per ounce, while gold futures fell 0.3% to $3,374.72 by 01:08 ET (05:08 GMT). Despite the recent dip, gold maintained strong gains from earlier in June, fueled by increased haven demand after the outbreak of hostilities between Israel and Iran.
The decline in gold was mainly driven by a stronger US dollar, which rose over 0.3% against a basket of currencies on Monday. The dollar’s strength reflects heightened risk aversion as investors sought security amid escalating geopolitical tensions.
Over the weekend, the US launched strikes on three major Iranian nuclear sites, with President Donald Trump asserting that the attacks effectively destroyed Iran’s nuclear capabilities. Trump emphasized the operation was motivated by concerns over Iran’s alleged nuclear weapons program—claims consistently denied by Iranian officials.
The strikes intensified the conflict, with Tehran threatening severe retaliation. Reports also indicated that Iran might block the Strait of Hormuz, a vital oil shipping route, raising fears of supply disruptions.
In response, oil prices surged sharply, stoking inflation worries that could prolong elevated interest rates. The dollar’s gains built on modest advances seen last week following the Federal Reserve’s cautious tone regarding future rate cuts.
This week, Federal Reserve officials, including Chair Jerome Powell—who will testify before Congress over two days starting Tuesday—are expected to provide further guidance on monetary policy.
Broader Metals Also Retreat
Other metals cooled after recent rallies, with platinum and silver easing. Platinum futures dipped 0.1% to $1,263.15 per ounce, retreating from last week’s more than four-year high. Silver futures rose slightly by 0.1% to $36.05 per ounce, remaining near a 13-year peak.
Industrial metals also softened, with London Metal Exchange copper futures down 0.1% to $9,643.15 per ton and US copper futures declining 0.3% to $4.82 per pound.
