Gold prices in the U.S. slipped early Monday as investors turned to the dollar for safety. The recent U.S. airstrikes on Iranian nuclear facilities sparked global concern, leading to heightened geopolitical uncertainty. As tensions rise, markets closely track Iran’s potential response.
Gold prices in the U.S. fell 0.4%, settling at $3,354.03 per ounce by 05:32 GMT. Additionally, U.S. gold futures dropped 0.5% to $3,369.10 per ounce. Despite global conflict, gold performed lower than usual, surprising many market watchers.
This price movement came as the U.S. dollar gained strength. The dollar index rose 0.3% against major rivals, making gold more expensive for holders of other currencies. As a result, demand for gold softened, despite its status as a traditional safe haven.
KCM Trade analyst Tim Waterer noted that the U.S. dollar benefited from safe-haven buying. This reaction pushed gold prices in the U.S. lower. Although Middle East tensions often lift gold prices, the dollar’s strength outweighed that trend.
Meanwhile, U.S. President Donald Trump suggested possible regime change in Iran. His administration issued stern warnings to Tehran against retaliating. In response, Iran vowed to defend itself after massive U.S. bunker-buster bombs hit the mountain above the Fordow nuclear site.
Simultaneously, Israel and Iran exchanged missile fire. Israeli jets targeted military locations in western Iran. These developments raised regional instability but did not cause widespread panic in global markets.
Asian stock markets slipped slightly, and oil briefly reached a five-month high. However, no major sell-off occurred across global exchanges. Investors appear cautious but not alarmed at least for now.
The Federal Reserve, in a recent report, said inflation remains elevated, while the labor market stays strong. These economic indicators also influence investor choices, affecting how gold prices in the U.S. respond.
Technical analysis suggests spot gold may test the $3,348 level. A drop below that could lead to a further decline toward $3,324. At the same time, silver climbed 0.1% to $36.02, and palladium rose 0.6% to $1,050.07.
Gold prices in the U.S. continue to face downward pressure as the dollar strengthens and conflict deepens in the Middle East.
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