Ammon News - Gold inched lower on Monday, pressured by a ‌stronger dollar and rising crude oil prices, as investors awaited U.S. President Donald Trump's decision on a proposed deal to extend the ceasefire with Iran.

Spot gold was down 0.3% at $4,521.25 per ounce, as of 0520 ​GMT, after hitting a two-week high in the previous session. U.S. gold futures ​for August delivery fell 0.9% to $4,551.60.

The dollar rose, making greenback-priced bullion more ⁠expensive for holders of other currencies.

"Oil's uptick in price, combined with the still-elusive U.S.-Iran deal, ​is just enough to keep gold off balance at the start of the week," said ​Tim Waterer, chief market analyst at KCM Trade.

Trump said on Friday he would soon decide on a proposed deal to extend the ceasefire with Iran, though the two countries still appeared to differ on significant ​issues that have been central to the conflict.

The U.S. said it struck Iranian military sites over the ​weekend, and Iran's Revolutionary Guards said on Monday it had targeted a U.S. base in response.

Meanwhile, Israeli ‌Prime ⁠Minister Benjamin Netanyahu ordered troops to move further into Lebanon in the battle against the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.

Oil prices rose more than 2% in early trading on Monday, stoking concerns around inflation and interest rate hikes.
While gold ​is traditionally seen as ​a hedge against inflation, ⁠it loses its appeal in a high-interest-rate environment as a non-yielding asset.

Federal Reserve Vice Chair for Supervision Michelle Bowman said on Friday that the impact ​of the war in the Middle East on the economy, while ​still measured, ⁠could lead to persistent inflation that might require tighter monetary policy.

"By the end of 2026, gold still has potential to hit $5,500 should favourable circumstances arise, notably lower oil prices and a depreciation ⁠of the ​dollar, underpinned by continued robust central bank buying and ​its role as a geopolitical and inflation hedge," Waterer said.

Spot silver rose 0.7% to $75.81 per ounce, platinum gained 1.5% to $1,945.15, and ​palladium rose 1.4% to $1,372.75.

Reuters