Gold slid to around $4,200 per ounce on Monday, hitting its lowest level in seven weeks. Silver fell 3.6%, slipping below $62 per ounce.
Stalemate in negotiations between the United States and Iran continues to support oil prices and fuels expectations of further rate hikes by the U.S. Federal Reserve (Fed) aimed at containing inflationary pressures.
Investors are now turning to the upcoming U.S. economic indicators, notably the Fed’s preferred inflation gauge and key employment data, which will be released this week. These statistics could provide new insights into the future trajectory of U.S. monetary policy.
Recently, the American President Donald Trump rejected Tehran’s latest proposal to allow the reopening of the Strait of Hormuz, saying that Iran had “played an overly aggressive game.” He, however, indicated he expected negotiations to resume later in the week. Tehran, for its part, stated that it did not intend to soften its terms to permit the reopening of this strategic waterway.
In the United States, several Federal Reserve officials have highlighted the robustness of economic growth and the strength of the labor market to justify the possibility of further interest-rate hikes.
