Gold dore bars stacked at the Perth Mint Refinery, operated by Gold Corp., in Perth, Australia | Bloomberg
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Gold fell to near $4,000 an ounce after the US and Iran traded attacks in the Persian Gulf, straining a ceasefire that pushed energy prices to pre-war levels last week and tempered expectations for interest-rate hikes.
Spot gold was down as much as 1.2% after rising more than 2% in the previous two sessions. A tanker carrying Qatari crude was hit during tit-for-tat assaults over the weekend that hampered shipping through the Strait of Hormuz, sending crude oil prices higher at the start of trading on Monday. Oil has since pared gains after the US and Iran agreed to stop attacking each other before peace talks resume this week. Gold holding above $4,000 despite renewed signs of tension in the strait “suggests marginal dip buyers have returned and are willing to defend this level,” said Justin Lin, an analyst at Global X ETFs Australia. “I expect gold to become increasingly resilient to Middle East volatility, especially now that it has completely erased year-to-date gains and fast-money investors have likely largely moved on.”
