S&P 500 slumps as Trump announces 25% tariff on South Korea, Japan
Investing.com-- Gold prices fell slightly in Asian trade on Monday, as safe haven buyers pivoted to the dollar after the U.S. attacked key nuclear facilities in Iran, marking an escalation in the Middle Eastern conflict.
The yellow metal was pressured by strength in the dollar, with broader metal prices also retreating slightly on Monday.
Spot gold fell 0.2% to $3,360.11 an ounce, while gold futures fell 0.3% to $3,374.72/oz by 01:08 ET (05:08 GMT). The yellow metal was still sitting on strong gains from earlier in June, as the onset of the Israel-Iran war boosted haven demand.
Gold prices dip as dollar sees increased haven demand
Gold was pressured chiefly by strength in the dollar, which rose more than 0.3% against a basket of currencies on Monday.
The U.S. attacked three key Iranian nuclear facilities over the weekend, with President Donald Trump claiming that the strikes had wiped out the facilities, halting Iran’s nuclear ambitions.
Trump said that the weekend attack was largely driven by concerns over Tehran developing a nuclear weapon, although Iranian officials have repeatedly denied such allegations.
Still, the U.S. strike marked a dire escalation in the Middle Eastern conflict, with Tehran warning of bitter retaliation. Reports said that Iran could also block the Strait of Hormuz, a key shipping channel, as retaliation.
Fears of Iranian retaliation sent oil prices up sharply, adding to concerns that high energy prices could underpin global inflation, in turn keeping interest rates high for longer.
The dollar benefited from these bets, having already made modest gains last week after the Federal Reserve struck a largely non-commital stance towards any future rate cuts.
A slew of Fed officials are set to speak this week, most notably Chair Jerome Powell, who will offer a two-day testimony before Congress from Tuesday.
Platinum, silver prices cool after recent peaks
Broader metal prices fell on Monday, with platinum and silver prices steadying after vastly outpacing gold in the past month.
Platinum futures fell 0.1% to $1,263.15/oz, retreating from an over four-year high hit last week, while silver futures rose 0.1% to $36.05/oz, remaining in sight of an over 13-year peak.
Among industrial metals, benchmark copper futures on the London Metal Exchange fell 0.1% to $9,643.15 a ton, while U.S. copper futures fell 0.3% to $4.820 a pound.