Gold prices continued to decline for the tenth consecutive session, influenced by geopolitical uncertainty after Iran denied any talks with the United States despite Trump’s announcement of postponing potential strikes on energy infrastructure. This contradiction brought uncertainty back to markets, especially with ongoing tensions and no clear signs of de escalation.
Although delaying escalation temporarily supported market sentiment and pushed oil prices lower, helping gold reduce part of its losses in the previous session, renewed doubts around negotiations quickly restored pressure on the metal, alongside a relative improvement in risk appetite.
At the macro level, rising energy prices increased concerns that inflation may remain elevated, leading markets to scale back expectations of interest rate cuts, with central banks likely to maintain tighter monetary policy for longer.
This shift in rate expectations, combined with a stronger dollar, continues to weigh on gold, reducing its appeal compared to yield bearing assets such as bonds. Pressure also extended to other metals, as silver and platinum posted mild declines, while copper dropped more noticeably, reflecting weaker expectations for industrial activity and global growth.
Meanwhile, the US dollar retreated during Monday’s trading after losing earlier momentum, as markets reassessed Trump’s comments about “positive” talks with Iran, prompting investors to move toward higher risk assets.
The dollar index declined, while US equities gained and oil prices came under sharp pressure following the decision to delay strikes on Iranian energy infrastructure, allowing room for a diplomatic path.
However, uncertainty remains, as Tehran denied any negotiations and maintained its stance, highlighting conflicting narratives that continue to drive market volatility.
In currency markets, movements were limited, with the euro steady, the British pound slightly lower, and the Japanese yen under relative pressure, impacted by higher energy prices given Japan’s reliance on oil imports through the Strait of Hormuz.
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