Gold prices retreated on Thursday as renewed conflict in the Middle East triggered fresh concerns that the US Federal Reserve may need to raise interest rates this year.
The geopolitical developments have quickly eclipsed recent market optimism surrounding easing inflation trends, shifting the focus toward potential monetary tightening.
The precious metal faced renewed selling pressure as traders retreated from recent highs, extending a downward trajectory that began earlier in the week.
This move marks a continuation of the weakness seen in global bullion trading over the weekend, where both gold and silver prices fell across international and domestic markets.
The repricing reflects a shift in market sentiment, with investors weighing the inflationary risks associated with Middle East instability against the safe-haven appeal of gold.
The prospect of a Fed rate hike, previously considered less likely, is now being factored into asset valuations, adding headwinds for non-yielding assets.