Gold prices eased slightly in Asian trading Monday, pressured by a resilient U.S. dollar ahead of a Federal Reserve meeting. Despite this minor pullback, the precious metal maintained robust gains fueled by escalating tensions between Israel and Iran, which heightened demand for safe-haven assets.
After soaring nearly 4% last week, spot gold slipped 0.1% to $3,427.78 an ounce, while August gold futures declined 0.2% to $3,446.45 per ounce as of 00:57 ET (04:57 GMT). The pullback reflected some profit-taking alongside the dollar’s firmness.
The surge in gold prices last week followed Israel’s airstrikes targeting several sites in Iran, including nuclear facilities in Tehran. Iran retaliated with missile strikes on key Israeli cities such as Tel Aviv, with some missiles reportedly breaching Israel’s “Iron Dome” defense system. This exchange marked a significant escalation in the long-standing regional conflict, raising concerns over potential wider involvement by other Middle Eastern powers.
U.S. attention remained focused on the situation, with President Donald Trump indicating efforts toward a resolution while also warning that Israel and Iran might need to “fight it out,” suggesting that a ceasefire could be distant. Additionally, Iran’s cancellation of planned nuclear talks with the U.S. further dampened hopes for de-escalation.
These geopolitical risks drove investors toward traditional safe havens, underpinning gold’s strong performance.
Meanwhile, the broader metal market faced pressure from a firm dollar ahead of the Federal Reserve’s upcoming policy decision. Platinum futures bucked the trend, rising nearly 1% to $1,224.00 per ounce after reaching a four-year high last week. Silver futures fell 0.3% to $26.26 per ounce.
Industrial metals also retreated, with London Metal Exchange copper futures slipping 0.1% to $9,627.75 per ton, and U.S. copper futures dropping 0.4% to $4.7972 per pound.
The U.S. dollar gained about 0.1% in Asian markets, supported by increased demand for safe assets amid geopolitical uncertainty. Investors also positioned ahead of the Federal Reserve’s meeting scheduled for Wednesday, where interest rates are expected to remain unchanged.
Market watchers will closely monitor Federal Reserve Chair Jerome Powell’s remarks for clues on the future trajectory of interest rates, particularly in light of signs indicating easing inflation and slower economic growth.
