Gold drops early Monday as the dollar strengthened and oil prices advanced while investors awaited a decision from U.S. President Donald Trump on a proposed deal to end the conflict with Iran.
The U.S. military said early Monday that it had bombed Iranian radar and drone control sites in Iran after the Islamic republic shot down a U.S. drone this weekend. U.S. President Donald Trump posed on Truth Social early Monday about the talks but didn’t indicate whether he would move ahead with a proposed deal.
“Iran really wants to make a deal, and it will be a good one for the U.S.A. and those that are with us,” he wrote. “Just sit back and relax, it will all work out well in the end—It always does!”
August gold futures rose 0.8% last week to settle at $4,593.00 an ounce on Comex after the most-active contract gained 1.3% Friday. Bullion dropped 0.8% in May after losing 1% in April and sliding 11% in March. It rallied 64% last year. The August contract is currenlty down $96.2 (-2.09%) an ounce to $4496.70 and the DG spot price is $4456.50.
Trump met with advisers Friday on the proposed deal with Iran but has yet to indicate whether he will sign off on it, and Iran has said the deal hasn’t yet been finalized. Gold prices have fallen on hawkish news about the war for the past few months and have rallied on signs of a peace agreement. But the conflict has driven up the cost of goods, raising speculation that the Federal Reserve may have to raise interest rates to combat persistent inflation.
Investors will be watching for key labor market indicators for May later this week for indicators on the Fed’s next moves. The central bank’s favorite inflation measure, the personal consumption expenditures price index, on Thursday showed consumer prices were at their highest levels in almost three years, reaching an annual rate of 3.8% in April. The Fed’s target is 2%.
Over 99% of the investors tracked by the CME FedWatch Tool are betting on rates staying unchanged again in June. The Fed has kept interest rates unchanged this year after three previous rate cuts. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
The Fed in April held interest rates steady at 3.5% to 3.75%, as expected, but policymakers were unusually divided, and the central bank has a new chair, Kevin Warsh.
Front-month silver futures fell 0.4% last week to settle at $75.88 an ounce on Comex. The July contract slipped less than 0.1% Friday. The most-active contract touched a record above $115 in January. Silver gained 2.5% in May after losing 1.2% in April and dropping 20% in March. It rose 141% last year. The July contract is currently down $1.070 (-1.41%) an ounce to $74.805 and the DG spot price is $74.58.
Spot palladium lost 0.2% last week to $1,364.00 an ounce after declining 1.2% Friday. Palladium fell 12% last month after rising 3.2% in April and tumbling 17% in March. Palladium rose 74% last year. Currently, the DG spot price is down $8.90 an ounce to $1363.00.
Spot platinum decreased 0.6% last week to $1,928.20 an ounce after slipping 10 cents Friday. It dropped 3.2% in May after gaining 1.3% in April and declining 17% in March. Platinum increased 122% in 2025. The DG spot price is currently down $0.10 an ounce to $1931.40.
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