Gold Edges Lower On Inflation, Rate Hike Concerns

Gold prices fell sharply on Monday, with fresh U.S.-Iran tensions and rate hike jitters weighing on the precious metal’s safe-haven appeal.

Spot gold fell 1.1 percent to $4,043.25 an ounce, after having fallen to a near eight-month low last week amid expectations that the U.S. Federal Reserve will raise interest rates this year. U.S. gold futures were down 0.90 percent at $4,059.45 an ounce.

The U.S. dollar was on track for its best monthly performance in nearly a year amid renewed uncertainty over the fragile ceasefire between the U.S. and Iran.