Gold prices remained little changed on Monday, caught between conflicting macroeconomic signals.
Investors are weighing the safe-haven appeal of the precious metal against the headwind of potential interest rate increases, while simultaneously assessing the market impact of an escalating conflict in the Middle East.
The geopolitical tension has already pushed oil prices higher, adding to inflationary concerns.
This energy price surge typically supports gold as a hedge against rising costs and currency debasement.
However, the metal’s ability to rally was constrained by shifting monetary policy expectations.
Another US Federal Reserve policymaker signaled that interest rate hikes may be nearer than previously anticipated, a development that strengthens the dollar and increases the opportunity cost of holding non-yielding assets like gold.