Gold prices fell as U.S. President Donald Trump renewed threats to destroy Iranian power facilities, with Tehran showing little indication of accepting Washington's demands to end Middle East conflicts. In early trading, gold dropped by 1.3%, following a steep 1.7% decline in the previous session.
Over the weekend, Trump stated on social media that the U.S. would bring devastation to Iran if it did not keep the Strait of Hormuz open. Tehran rejected the ultimatum and continued targeting energy infrastructure across the region.
Since the conflict began over a month ago, gold has trended downward. Rising energy prices have heightened inflation concerns and reduced expectations for interest rate cuts. Additionally, investors liquidating positions to cover losses in other markets have diminished gold's appeal as a safe-haven asset.
As of the latest update, spot gold was down 1% at $4,630.08 per ounce; silver fell 1.4% to $72.04; platinum and palladium also registered declines.
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