Gold prices fall as Trump rejects Iran peace proposal

Gold fell to $4,692.49 after Donald Trump rejected an Iranian peace proposal. The move stoked inflation fears and lowered expectations for rate cuts in 2026.

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Gold fell 0.5% to $4,692.49 per ounce on Monday morning after the United States rejected a peace proposal from Iran. The rejection followed an Iranian response focused on ending conflict in Lebanon and seeking war compensation. Investors fear prolonged geopolitical tension will fuel inflation, keeping interest rates higher for longer and raising gold's opportunity cost.

Geopolitical Friction and Inflation Risks

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