Gold prices fell on Monday, recording their lowest levels in about a week, due to the strength of the dollar and increasing fears of inflation as a result of rising energy prices, which reduced expectations of a cut in US interest rates this year.
The price of gold in spot transactions fell by 0.47%, reaching $4,725.79 per ounce, its lowest level since April 7. US gold futures for June delivery also fell by 0.81% to $4,748.76.
Regarding other precious metals, the price of silver in spot transactions fell by 1.9% to $74.45 per ounce, platinum fell by 1.3% to $2,019.35, while palladium rose by 0.7% to $1,531.50.
The spot price of gold has declined by more than 11% since the outbreak of the “US-Israeli war on Iran” on February 28, and investors believe that the chances of a US interest rate cut this year have diminished, due to fear of rising energy prices and what it may cause to increase inflation and reduce opportunities for monetary easing.
Before the outbreak of the “war in the Middle East,” expectations were that interest rates might be cut twice during the year, knowing that gold usually tends to rise when interest rates fall.
