SRMED
Englishعربي
Englishعربي
Gold prices declined sharply on Monday as the strengthening U.S. dollar and fading expectations for interest rate cuts pressured the precious metal, amid escalating geopolitical tensions between the United States and Iran.[1][3]
Spot gold prices fell 0.5% to $4,652.89 per ounce, while April futures contracts settled at $4,678.70 per dollar, according to reporting on market activity.[1] The broader pullback reflects a confluence of factors reshaping market dynamics: strong U.S. employment data released Friday showed 178,000 jobs added in March—the highest level since December 2024—coupled with an unemployment rate that dropped to 4.3%.[1][3] This robust labor market performance has reinforced Federal Reserve expectations to maintain higher interest rates for longer, diminishing the appeal of gold, which generates no yield and becomes less attractive when interest rates rise.
The dollar's ascent compounds these pressures. Rising Treasury yields on 10-year U.S. bonds, driven by the stronger employment data, have pushed the dollar higher for three consecutive trading sessions, making dollar-denominated commodities like gold more expensive for foreign buyers.[1][3] The currency strength reflects market reassessment of monetary policy prospects, with futures markets now pricing in only a 50% probability of a Federal Reserve rate cut by December, down from earlier expectations of unchanged rates.[3]
Geopolitical instability continues to complicate the outlook. Tensions escalated as President Donald Trump threatened Iran over the Strait of Hormuz, raising concerns about prolonged disruptions to global energy supplies and sustained oil price inflation.[1][3] While such uncertainty typically supports gold as a safe-haven asset, the near-term headwinds from rate expectations and dollar strength have overwhelmed this protective dynamic. The metal has declined approximately 3% since war erupted in the Middle East on February 28.[2]
Other precious metals also retreated: silver fell 0.9% to 1%, while platinum declined 0.6% and palladium edged up just 0.3%.[1][2] Trading volumes remained thin due to holiday closures across Asian and European markets, limiting price discovery.[1][3] Market participants are now awaiting the Federal Reserve's March meeting minutes, expected later in the week, which may provide additional clarity on the central bank's policy trajectory and potentially influence both currency and commodity movements going forward.