<ul>
<li>Trump calls Iran’s response to US peace proposal ‘unacceptable’</li>
<li>Brent crude oil rises above $103 a barrel</li>
<li>Trump, Xi to discuss Iran among other topics later this week</li>
<li>U.S. April CPI data due on Tuesday</li>
</ul>
(Rewrites to EMEA morning trading)
By Noel John
May 11 (Reuters) - Gold fell 1% on Monday, as elevated oil prices stoked worries over inflation and prolonged high interest rates, while peace talks between the United States and Iran remained unsolved.
Spot gold (XAU=) fell 1% at $4,667.99 per ounce, as of 0852 GMT. U.S. gold futures (GCcv1) for June delivery lost 1.1% at $4,677.80.
The dollar rose, making greenback-priced bullion more expensive for holders of other currencies. (USD/)
U.S. President Donald Trump on Sunday rejected Iran’s response to a U.S. proposal for peace talks to end the war, saying Tehran’s demands were “totally unacceptable.”
Brent crude oil prices rose above $103 a barrel amid concerns the 10-week-old conflict will drag on, keeping shipping through the Strait of Hormuz paralyzed. (O/R)
“Inflation risks still weigh heavy on the market’s collective mind, as attempts to end the Middle East conflict reached an impasse after the U.S. and Iran rejected each other’s peace proposals,” said Han Tan, chief market analyst at Bybit.
Gold prices have fallen more than 11% since the war began in late February, pressured by higher oil prices. Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is seen as an inflation hedge, high rates tend to weigh on the non-yielding asset.
Traders have largely priced out U.S. Federal Reserve rate cuts this year, with markets now seeing a 31% chance of a hike by March 2027, according to CME Group’s FedWatch tool. (FEDWATCH)
Investors will eye Trump’s meeting with Chinese President Xi Jinping on Wednesday as the Gulf will be on the agenda.
They will also looking out for April’s U.S. Consumer Price Index data on Tuesday, for further clues on the Fed’s monetary policy direction.
“Gold may face greater downward pressure should tomorrow’s U.S. CPI prints come in hotter than expected, in turn forcing the Fed to keep its benchmark rates elevated for a longer period of time,” Tan said.
Spot silver (XAG=) was steady at $80.34 per ounce, platinum (XPT=) slid 1.6% to $2,022.93, and palladium (XPD=) was down 1.1% at $1,475.55.

On May 10, Trump tweeted angrily declaring Iran's latest response "completely unacceptable." Iran, through Pakistan, proposed an immediate ceasefire and the lifting of the naval blockade, while the US insists that Iran suspend uranium enrichment and restore passage through the Strait of Hormuz. The two sides remain fundamentally opposed. Do you think there's any possibility of breaking this deadlock?

On May 10, Trump tweeted angrily declaring Iran's latest response "completely unacceptable." Iran, through Pakistan, proposed an immediate ceasefire and the lifting of the naval blockade, while the US insists that Iran suspend uranium enrichment and restore passage through the Strait of Hormuz. The two sides remain fundamentally opposed. Do you think there's any possibility of breaking this deadlock?

US-Iran deadlock returns — is a ceasefire still possible?

GOLD

600547

Reuters

Agnico Eagle Mines

Gold.com

SD-GOLD

ZHONGJIN GOLD

Kinross Gold

Us Brent Oil

Us Gbl GLD & Met

Roundhill Gold Miners Weeklypay ETF

SPDR Gold Shares

Abrdn Precious Metals Basket ETF Trust

GLOBAL X Gold Explorers

ChinaAMC CSI SH-SZ-HK Gold Industry Equity ETF

Abrdn Gold ETF Trust

SPDR O&G Ex & Prd

iShares MSCI Global Gold Miners

Direxion Daily Gold Miners Bull 2X

PRECIOUS-Gold falls on oil-driven inflation fears as Trump rejects Iran peace proposal