Escalating Middle East conflict drives crude prices higher, fueling inflation fears and expectations of tighter monetary policy.
Gold futures fell below $4,000 per ounce Monday as renewed military strikes between the U.S. and Iran sent oil prices sharply higher. The move reignited concerns over inflationary pressures and potential central bank rate hikes to curb rising costs.
The drop follows a period of relative stability in gold markets, with prior sessions showing muted reaction to geopolitical risks. Analysts had expected gold to hold above $4,000 amid safe-haven demand, but the surge in crude prices shifted investor focus toward inflation risks.
Markets are now pricing in a higher probability of delayed rate cuts, with traders monitoring Federal Reserve commentary for further signals.