Gold prices fell on Monday, penalized by the strengthening of the American dollar. The latter, driven by a solid report on employment in the United States, continues to dampen hopes of a rate cut, while the markets await declarations from President Donald Trump in a context of escalating tensions with Iran.
Spot gold fell 0.4% to $4,658.90 an ounce at 07:06 GMT, while US futures for April delivery rose 0.1% to $4,684.30 in a weak market due to holiday closures in some countries. regions of Asia and Europe.
“Markets are looking for a new risk catalyst as Donald Trump is scheduled to hold a press conference regarding the current situation between the United States and Iran,” said Kelvin Wong, senior market analyst at OANDA.
Meanwhile, Donald Trump has threatened Tehran with “hell” if the Strait of Hormuz is not reopened by Tuesday, although recent US intelligence assessments suggest that a reopening of this crucial sea lane for oil is unlikely in the short term.
Investors also saw a report from Axios indicating that the United States, Iran and a group of mediators are discussing a possible 45-day ceasefire that could pave the way for a permanent end to the conflict.
Brent oil prices rose as the war continued to disrupt global energy supplies, fueling inflation fears. [O/R]
While gold is traditionally seen as a hedge against inflation, high interest rates tend to weigh on demand for this non-yielding asset.
The yield on 10-year US Treasury bonds and the dollar index rose, supported by data released on Friday showing that non-farm job creation in March saw its biggest increase since December 2024, while the unemployment rate fell to 4.3%. [USD/] [US/]
“The recent strength in the NFP report has reinforced the central bank’s restrictive stance, while lingering fears of oil-driven inflation continue to overshadow gold’s traditional safe-haven appeal,” said Tim Waterer, chief market analyst at KCM Trade.
Traders have almost completely ruled out any likelihood of a Federal Reserve rate cut this year, compared to two reductions expected before the start of the war with Iran.
Spot silver fell 0.9% to $72.31 an ounce, platinum lost 0.3% to $1,983.62, while palladium rose 0.7% to $1,511.94.
