(RTTNews) - Gold prices were little changed on Monday, after having hit a more than one-and-a- half-month low earlier in the session, on rising Middle East tensions and inflation concerns.
Spot gold edged up marginally to $4,543.66 an ounce while U.S. gold futures slipped 0.3 percent to $4,547.97.
Brent crude futures traded above $110 a barrel, building on last week's rally as the continued near-shutdown of the Strait of Hormuz kept supply concerns elevated.
U.S.-Iran tensions remain elevated after U.S. President Donald Trump on Sunday warned that "the clock is ticking" for Iran and they better get moving, FAST, or there won't be anything left of them.
According to Iran's Fars News Agency, the U.S. has demanded for the permanent cessation of uranium enrichment and the handover of its enriched uranium stockpile.
The U.S. has refused to pay any war compensation and wants only one operating nuclear facility to remain in the Islamic Republic.
Iran is insisting that it would only return to negotiations if Israel's ongoing war with Hezbollah in Lebanon come to an end, its sovereignty over the vital Strait of Hormuz corridor is recognized, demands for reparations are met, sanctions on Iran are lifted and its frozen overseas assets are released.
A drone strike caused a fire at a nuclear power plant in the United Arab Emirates and Saudi Arabia reported intercepting three drones, escalating regional tensions.
Several Federal Reserve officials recently emphasized that controlling inflation is their top priority and that interest rate hikes could be on the cards if price pressures persist.
The U.S. dollar held its ground against major currencies and the yield on 10-year U.S. Treasury notes rose to its highest since February 2025 amid expectations that the Federal Reserve could raise interest rates later this year. Traders currently see a 40 percent chance of a Fed rate hike in December, according to CME Group's FedWatch tool.
Minutes of the Fed's last meeting due out on Wednesday may show how much pressure there was on the committee for a shift to a neutral stance.
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