Gold prices retreat slightly as the US dollar gains amid escalating geopolitical risks in the Middle East.
Gold prices fell 0.19% on Monday as renewed hostilities between the US and Iran bolstered demand for the US dollar. XAU/USD traded lower after a brief ceasefire collapsed nine days after its announcement, reigniting geopolitical uncertainty.
The decline follows a period of relative stability, with gold previously supported by safe-haven demand during the truce. Analysts had anticipated a muted reaction to the ceasefire breakdown, though the dollar’s strength weighed on non-yielding assets.
Market reaction remained subdued, with traders monitoring developments for further escalation risks.