Overview
- Gold dropped more than 1% on Monday to trade near $4,000 an ounce after fresh U.S.–Iran military exchanges over the weekend and reports that both sides agreed to halt attacks and meet in Doha.
- Markets have moved to price a significant chance of additional Fed rate hikes this year, which has pushed Treasury yields and a firmer dollar higher and reduced appetite for gold.
- Oil prices rose briefly after a tanker was struck and shipping through the Strait of Hormuz was disrupted, reviving inflation concerns that can support gold even as higher rates weigh on the metal.
- Local retail markets reflected the international slide with 24K gold around ₹1.43 lakh in major Indian cities and roughly Rs431,236 per tola in Pakistan on June 29.
- Gold has given back about 23% since late February and now sits near key technical support between $3,950 and $4,000 as investors focus on this week’s U.S. jobs data and the outcome of the Doha talks for the next directional cue.