Gold prices slipped on Monday as uncertainty over stalled US–Iran peace talks and rising oil prices fuelled fresh inflation concerns, reducing expectations of near-term interest rate cuts. Spot gold fell 0.6% to $4,684.32 per ounce, while US gold futures for June delivery declined 0.8% to $4,692.70.
The weakness came as escalating Middle East tensions pushed oil higher, raising fears that persistent inflation could keep interest rates elevated for longer. This weighed on gold, which typically loses appeal in a high-rate environment as it does not yield interest.