Gold prices hold steady amid inflation and rate concerns

Gold prices remained largely unchanged on Monday as investors balanced concerns over conflict-driven inflation against a weakening dollar and persistent safe-haven interest. Spot prices were recorded at $5,025.16 per ounce during morning trading in the United States, recovering slightly after touching their lowest levels since late February. The pullback in the dollar from recent peaks has provided some support, making bullion more accessible for international buyers. Market analysts suggest that the ongoing tensions in the Middle East are creating a complex environment for precious metals. The potential for rising energy costs, particularly for Brent Crude Oil, remains a primary concern for central banks. Bob Haberkorn, a senior market strategist at RJO Futures, noted that the link between energy prices and monetary policy is a key factor for the metal.

With higher oil prices comes higher inflation.