Gold prices edged lower in Asian trade on Monday, weighed down by a stronger U.S. dollar, even as heightened geopolitical tensions between Israel and Iran supported safe-haven demand. Spot gold dipped 0.1% to $3,427.78 per ounce, while August gold futures fell 0.2% to $3,446.45.
Last week, gold surged nearly 4% after Israel launched strikes on Iranian targets, including nuclear sites, prompting Iran to retaliate with missile attacks on major Israeli cities like Tel Aviv. Some missiles bypassed Israel’s Iron Dome defense system, intensifying fears of broader regional conflict. The weekend violence led Iran to cancel scheduled nuclear talks with the U.S., further reducing hopes for diplomatic de-escalation. U.S. President Donald Trump noted his administration was working on a resolution but also stated the two nations might have to “fight it out,” hinting at prolonged hostilities.
Despite strong safe-haven demand, the dollar's resilience ahead of the Federal Reserve’s policy meeting this week capped further gold gains. The dollar rose 0.1%, supported by investor positioning before the Fed's expected decision to keep interest rates steady. Market attention now turns to Chair Jerome Powell’s comments, particularly regarding rate trajectory amid slowing inflation and economic growth.
In broader metals trading, silver futures dropped 0.3% to $26.26 per ounce, while platinum extended gains, rising nearly 1% to $1,224.00—its highest in over four years. Industrial metals were also under pressure, with London copper futures down 0.1% at $9,627.75 a ton and U.S. copper futures falling 0.4% to $4.7972 per pound.
The ongoing Middle East conflict and the Fed’s outlook remain key drivers for precious metal markets this week.


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