By: Economy Middle east

Gold prices declined on Monday, weighed down by a stronger dollar as rising oil prices—driven by a prolonged conflict with Iran—and robust U.S. labor data reduced expectations for Federal Reserve interest rate cuts.

Spot gold slipped 0.07 percent to $4,672 per ounce by 9:20 UAE time , while U.S. gold futures for April delivery remained unchanged at $4,678.70 in limited trade, with several markets in Asia and Europe closed for a holiday.

In the UAE, gold rates underwent a downward adjustment. The price of 24K fell AED3.00 to AED560.50. 22K dropped AED2.75 to AED521.75. 21K decreased AED2.50 to AED500.25. 18K declined AED2.25 to AED426.50. 14k fell AED1.75 to AED334.50.

Strong treasury yields and dollar

Data on Friday revealed that U.S. nonfarm payrolls increased by 178,000 jobs in March, the highest level since December 2024, while the unemployment rate dipped to 4.3 percent. The 10-year U.S. Treasury yield and the dollar index both strengthened, putting pressure on dollar-denominated bullion.

Brent oil prices advanced as the conflict involving the U.S., Israel, and Iran continued to impact global energy supplies.

U.S. President Donald Trump warned of severe consequences for Tehran if a deal is not reached to reopen the Strait of Hormuz by Tuesday, though recent intelligence reports suggest Iran is unlikely to restore access to the waterway in the near future.

The spike in crude prices has heightened concerns regarding inflationary pressures. While gold is typically viewed as an inflation hedge, high interest rates generally reduce the appeal of the non-yielding asset.

Traders have largely dismissed the possibility of a Fed rate cut this year. Prior to the outbreak of the war with Iran, markets anticipated two reductions in 2026.

COMEX gold speculators expanded net long positions by 1,098 contracts to 93,872 in the week concluding March 31.

Spot silver fell 0.49 percent to $72.66 per ounce, spot platinum lost 0.1 percent to $1,978.00, while palladium edged 0.07 percent higher to $1,491.00.