Gold prices fell on Monday as investors turned their attention to upcoming events—the Federal Reserve’s policy decision and the G7 summit—while monitoring the escalating conflict between Israel and Iran.
U.S. gold futures were down 0.6% to $3,431.8, retreating from its recent highs.
Despite ongoing missile and drone strikes between the two nations, markets showed no signs of panic. Wall Street futures steadied, and the U.S. dollar eased slightly.
Analysts noted that although geopolitical tensions remain elevated, expectations of future rate cuts and continued central bank demand may support gold in the longer term. The metal, up about 30% in 2025, has benefited from dollar weakness and investors shifting away from U.S. bonds.
With the Fed expected to hold interest rates steady midweek and Chair Jerome Powell set to speak, markets are watching closely for clues on future monetary policy. Meanwhile, G7 leaders are meeting in Canada, with the risk of broader regional escalation still looming.
Gold’s safe-haven appeal remains strong in uncertain times, especially with mounting global risks and a softer dollar making the metal more attractive to international buyers.