Gold moved lower toward $4,000 an ounce as investors weighed renewed US-Iran attacks in the Persian Gulf against the possibility of talks resuming this week. Spot gold fell as much as 1.2% after rising more than 2% across the previous two sessions, while oil initially climbed after a tanker carrying Qatari crude was hit during weekend retaliation that disrupted shipping through the Strait of Hormuz. The pullback suggests gold is still being pressured by inflation concerns tied to higher energy prices, which could keep central banks cautious on rates and reduce the appeal of non-yielding bullion. Gold has dropped about 23% since the US and Israel launched strikes on Iran in late February, as stronger consumer-price pressures raised expectations that policymakers may keep rates higher for longer. Still, the metal's ability to hold above $4,000 indicates dip buyers may be returning to defend that level, with spot gold down 1.1% to $4,044.79 an ounce, while silver fell 2% to $58.99 and platinum and palladium also retreated.
Gold.com, Inc.Gold price drop due to renewed US-Iran tensions and inflation concerns from higher energy prices, reducing appeal of gold.