Iran crisis pressures gold, silver, platinum, and palladium as a stronger dollar weighs

[Shiny stack of gold and silver ingots and coins, close-up]
matejmo

Gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) and silver prices fell on Monday, pressured by a stronger U.S. dollar (DXY [https://seekingalpha.com/symbol/DXY]) and higher interest rate concerns, as the Middle East war extended into a second week and oil approached $120 a barrel.

Spot gold was last down 1.4% to $5,087.87 an ounce, after dropping as much as 3%, following its first weekly decline in more than a month, while silver fell 1.9% to $82.74. Oil futures topped [https://seekingalpha.com/news/4562109-stock-futures-slide-as-oil-rally-amid-us-iran-conflict-sparks-growth-concerns]$115/bbl after Strait of Hormuz disruptions, and major oil and gas producers in the Persian Gulf region curbed output as the US-Israeli war with Iran showed no sign of resolution. The dollar strengthened against all of its major peers and jumped as much as 0.7%.

"Gold prices oscillated as strong haven buying was offset by concerns of higher energy prices stoking inflation and delaying rate cuts by the Fed," ANZ analysts said in a note, adding that metals have eased on fears of weaker demand, and precious metals wavered on inflation concerns.

Meanwhile, raising geopolitical tensions in the Middle East, Iran on Monday named Mojtaba Khamenei to succeed his father, Ali Khamenei, as supreme leader, ⁠signaling ​that hardliners remain firmly in charge.

While gold typically gains during periods of uncertainty, rising interest rates increase its opportunity cost, and a stronger dollar also makes it less attractive. The metal is up 18% this year, with silver (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]) also advancing 18%.

[ ]
The chart tracks YTD movement in gold, silver, SP500, and the U.S. dollar. (Seeking Alpha)

The U.S. 10‑year Treasury yields had risen to a one-month high, raising the cost ​of holding non‑yielding gold.

Among other precious metals, spot platinum (XPTUSD:CUR [https://seekingalpha.com/symbol/XPTUSD:CUR]) was down about 2% to $2,101.00, and palladium (XPDUSD:CUR [https://seekingalpha.com/symbol/XPDUSD:CUR]) was 2.7% at $1,617.00.

MORE ON GOLD SPOT PRICE, SPDR GOLD SHARES ETF, ETC.

* Iran War, Week 2: Oil Breaks $100 - What Comes Next [https://seekingalpha.com/article/4879915-iran-war-week-two-oil-breaks-100-what-comes-next]
* Large NFP Miss And Oil Surge To $90 - A Stagflation Cocktail Ahead Of Weekend Risk [https://seekingalpha.com/article/4879562-large-nfp-miss-oil-surge-to-90-stagflation-cocktail-ahead-of-weekend-risk]
* Gold Market Commentary: When The Dollar Turns On Itself [https://seekingalpha.com/article/4879495-gold-market-commentary-when-dollar-turns-on-itself]
* Gold posts first weekly decline since January, with dollar rising by most in a year [https://seekingalpha.com/news/4562055-gold-posts-first-weekly-decline-since-january-with-dollar-rising-by-most-in-a-year]
* Gold and silver slide on dollar strength, renewed inflation worries [https://seekingalpha.com/news/4561633-gold-and-silver-slide-on-dollar-strength-renewed-inflation-worries]