(RTTNews) – Gold prices were moving lower on Monday due to expectations for additional Federal Reserve rate hikes.
The U.S. Federal Reserve raised rates for the first time since 2023 last week due to elevated inflation, and projections suggest one more increase this year.
Spot gold dipped 0.6 percent to $4,352.25 an ounce while U.S. gold futures were down 0.8 percent at $4,390.55.
The dollar index held steady in early European trade after benchmark Treasury yields topped 5 percent on Friday amid uncertainty over the Federal Reserve’s rate path.
Investors await a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping this week for signs of progress in trade discussions.
Ahead of the summit, U.S. Treasury chief Scott Bessent called trade and AI talks with China very successful.
Traders were also tracking movements in crude oil prices ahead of a crucial meeting this week between Trump and Gulf-state leaders on the sidelines of the United Nations General Assembly.
Ahead of the talks, Trump warned Iran that it would fail economically or face its leadership being wiped out if it didn’t make a deal.
Trump indicated potential for a meeting with Iranian President Masoud Pezeshkian in New York, adding that very big things could happen soon and he is in a “deciding mode” on military action, continued economic pressure or a deal.
The U.S. Virtual Embassy in Iran urged Americans to leave immediately, warning of flight cancellations and airspace closures.
Iran said it sent conditions to Washington through Qatar for ending the war and vowed to retaliate harshly to any fresh attacks.
Saudi Arabia on Saturday confirmed that Yemen’s Houthi rebels tried to attack its capital with a ballistic missile, the first strike targeting Riyadh since the new conflict began.
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