By: Economy Middle east

Gold prices edged lower in quiet Asian trading Monday, pressured by U.S. inflation concerns clouding Federal Reserve policy expectations while markets monitored U.S.-Iran peace talks.

Spot gold declined 0.87 percent to $4,589.77 per ounce by 11:06 UAE time. U.S. gold futures for June delivery dropped 0.95 percent to $4,600.30 per ounce.

In the UAE, gold rates softened across purities: 24-carat fell AED1 to AED555.00, 22-carat declined AED1 to AED513.75, 21-carat eased AED0.75 to AED492.75, 18-carat dropped AED0.75 to AED422.25, and 14-carat shed AED0.5 to AED329.50.

Federal Reserve dissenters from last week’s policy statement argued the Iran war oil shock eliminates rate cut bias, potentially paving way for borrowing cost hikes that weigh on non-yielding gold.

Surging oil above $100 per barrel could lock central banks into prolonged higher rates, further challenging precious metals.

Oil benchmarks eased slightly but held firm above $100, with U.S.-Iran negotiations lacking clarity. President Donald Trump announced U.S. efforts starting Monday to free ships trapped in the Gulf by the U.S.-Israeli Iran conflict, as a tanker reported unknown projectile strikes in the Strait of Hormuz.

Iranian media noted Washington responded to Tehran’s 14-point proposal via Pakistan, now under review.

Spot silver tumbled 1.13 percent to $74.88 per ounce, platinum eased 0.51 percent to $2,001.40, and palladium fell 0.91 percent to $1,532.00.