Ammon News - Gold prices touched a near one-week low on Monday, ‌pressured by a stronger dollar, while a surge in oil prices following failed U.S.-Iran peace talks fuelled inflation worries and dampened expectations for Federal Reserve interest rate cuts this year.

Spot gold was down ​0.7% at $4,716.70 per ounce, as of 0445 GMT, its lowest level since April ​7. U.S. gold futures for June delivery fell 1% to $4,738.90.

The dollar strengthened ⁠0.4%, while oil prices bounced back above $100 a barrel, as the U.S. Navy prepared ​a blockade of the Strait of Hormuz that could restrict Iranian oil shipments, following the U.S. ​and Iran's failure to reach a deal to end the war.

Iran's Revolutionary Guards responded by warning that military vessels approaching the Strait will be considered a ceasefire breach and dealt with harshly and decisively.

Spot gold has fallen more than 11% since the U.S.-Israeli war on Iran began on February 28. While inflation and geopolitical risks typically boost gold's appeal as a hedge, elevated interest rates weigh on the non-yielding metal.

Traders ⁠now see little chance of a U.S. rate cut this year, as higher energy prices threaten to feed into broader inflation and limit the scope for monetary easing.

Before the war in ⁠the ​Middle East began, there were expectations for two Fed ​rate cuts this year.

Among other metals, spot silver fell 2% to $74.35 per ounce, platinum lost 0.2% to $2,041.40, while palladium ​gained 0.7% to $1,530.80.

Reuters