Gold falls on stronger dollar amid renewed US-Iran tensions

Gold prices fell more than 1% on Monday as the dollar firmed, while uncertainty over the U.S.-Iran peace talks pushed oil prices higher and revived inflation fears.

FUNDAMENTALS

* Spot gold was down 1.4% at $4,762.09 per ounce, as of 0055 GMT, after falling to its lowest level since April 13 earlier in the ‌session.


* U.S. ⁠gold futures ⁠for June delivery fell 2% to $4,781.90.

* The dollar index strengthened, making greenback-priced bullion more expensive for other currency holders.

* Oil prices jumped and stock markets wobbled as rising tension in the Middle East kept shipping in and out of the Gulf to a bare minimum, though traders were holding out hope for a resolution.

* The U.S. has ⁠seized an ‌Iranian cargo ship that tried to run its blockade and Iran said it would retaliate, raising the possibility that the ⁠ceasefire between the two countries might not last for even the two days it is set to remain in force.

* Iran said it would not participate in a second round of negotiations that the U.S. had hoped to kick off before the ceasefire expires on Tuesday.

* Federal Reserve Governor Christopher Waller said on Friday that while the U.S.-Israeli war with Iran ‌will likely drive up near-term inflation, a fast end to the conflict would keep the door open to cutting interest rates later this year.

* ⁠Meanwhile, gold demand during one of India's key buying festivals stayed muted on Sunday as record prices curbed jewellery purchases, offsetting a modest uptick in investment demand.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.1% to 959.69 metric tons on Thursday.

* Among other metals, spot silver fell 1.7% to $79.42 per ounce, platinum lost 0.8% to $2,086, and palladium was down 0.8% to $1,547.10.

DATA/EVENTS (GMT)

0430 Japan Tertiary Ind act NSA Feb