Gold dips as Middle East conflict fuels inflation fears
Spot gold fell 0.7% to $4,502.89 per ounce as rising geopolitical tensions in the Middle East sparked concerns over prolonged inflation. Investors are weighing the potential for higher interest rates while awaiting key U.S. labor market data and remarks from Federal Reserve officials.
Gold prices fell 0.7% to $4,502.89 per ounce on Monday morning as escalating conflict in the Middle East fueled inflation concerns. The drop follows a two-week high reached on Friday. Investors are pricing in a higher-for-longer interest rate environment, which reduces the appeal of non-yielding assets.
### Conflict Escalation Pressures Bullion Fresh strikes between Iran and the United States have intensified geopolitical tensions. Both nations accused the other of aggression as diplomatic efforts to end three months of war continue without resolution.
