Gold, silver fall as dollar rises

Gold bars

Gold prices declined on Monday as the US dollar strengthened. Meanwhile, the renewed closure of the Strait of Hormuz pushed oil prices higher, reviving concerns over renewed inflationary pressures and the potential for tighter monetary policies by central banks worldwide.

June gold futures fell by 1.45%, or $71.80, to $4,807.80 per ounce.

Spot gold prices dropped by 0.95% to $4,785.04 per ounce, while silver declined by around 1.55% to $79.618 per ounce.

The US dollar index—measuring the greenback’s performance against a basket of six major currencies—rose by 0.25% to 98.37 points as of 09:21 AM Makkah time.

May silver futures fell by 2.5% to $80.36 per ounce. Spot platinum prices declined by 1.45% to $2,082.92, while palladium slipped by 0.8% to $1,550.61.

The U.S. seizure of an Iranian cargo vessel has increased the likelihood of a ceasefire failing before its scheduled expiration on Tuesday, particularly after Tehran refused to participate in a second round of talks Washington had hoped to hold, according to Reuters.