Today’s markets analysis on
Gold declined on Monday as the metal faces a stable US dollar and rising Treasury yields. Ongoing inflation concerns arising from elevated oil prices could continue to push monetary policy expectations toward more caution, lifting yields and weighing on non-yielding assets such as bullion. Persistent incidents in the Strait of Hormuz, despite efforts to reopen the waterway, could continue to push oil prices up and fuel inflation risks, leaving gold vulnerable to more declines.
Global monetary policy trends could also weigh on the metal. Last week, the Federal Reserve kept its interest rates unchanged while officials signalled that the inflationary impact of the high energy prices reduces the scope for interest rate cuts. Other major central banks also kept monetary policy on hold, while expectations point to potential rate hikes in the near future, which could place additional pressure on the precious metal.
However, gold continues to find support from central banks’ accumulation, underscoring sustained demand for the metal as a strategic asset, and ongoing tensions in Eastern Europe, helping limit downside risks. Looking ahead, gold’s trajectory will remain closely tied to developments in the Middle East and their impact on energy markets and inflation expectations.
Zaid Barem / ymm
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