By: Creamer media

Gold prices stabilized on Monday after recovering from an earlier decline of nearly 1 percent. A weakening dollar served to counterbalance diminishing expectations for immediate U.S. interest rate reductions, which have been stifled by soaring energy costs. 

Spot gold slipped by 0.03 percent to $5,017.77 per ounce by 9:48 Dubai time, while U.S. gold futures for April delivery decreased by 0.81 percent to $5,020.66.

Within the UAE, gold rates experienced slight decreases. The prices for 24, 22, 21, and 18-carat gold dropped by AED0.50, reaching AED604.25, AED559.50, AED536.50, and AED459.75 respectively. Concurrently, 14-carat gold declined by AED0.25 to AED358.75. The U.S. dollar softened marginally, rendering commodities denominated in greenbacks more affordable for investors utilizing alternate currencies.

Yields on the U.S. 10-year Treasury retreated, enhancing the attractiveness of non-yielding assets like bullion. 

Oil remained positioned above $100 a barrel as geopolitical tensions persisted into its third week. This instability threatens energy infrastructure and maintains the closure of the Strait of Hormuz, marking the most severe interruption to global supplies on record.

Elevated crude oil prices contribute to inflationary pressures by increasing logistics and manufacturing overheads. While gold functions as a safeguard against inflation, high interest rates boost the appeal of income-generating investments, tempering demand for bullion. The U.S. Federal Reserve is widely anticipated to maintain current interest rates during its upcoming Wednesday session.

Simultaneously, U.S. President Donald Trump announced on Sunday that his government is consulting with seven nations regarding the protection of the Strait of Hormuz. 

In other metals, spot silver dipped by 0.30 percent to $80.37 per ounce, while spot platinum advanced by 1.43 percent to $2,056.00 and palladium rose by 1.24 percent to $1,555.00.