Gold settles 1% lower as investors book profits

Gold bars

Gold prices fell on Monday as investors locked in gains from last week’s rally driven by Middle East tensions, while markets awaited the US Federal Reserve’s policy meeting this week.

August gold futures settled 1% lower, down $35.5, at $3,417.3 an ounce.

The pullback followed a 1.5% gain on Friday, after Israel launched an airstrike on Iran, prompting a flight to safe-haven assets.

Investors moved to take profits, particularly after Iranian Foreign Minister Abbas Araghchi reportedly called on US President Donald Trump to intervene and force Israel to cease fire, questioning his commitment to diplomacy and a peaceful resolution to the conflict.

Market participants are now focused on the Fed’s two-day meeting ending Wednesday, where policymakers are expected to keep interest rates steady in the 4.25%-4.50% range.

Traders are also awaiting the Fed’s quarterly economic projections, which will offer fresh insights into the outlook for inflation, interest rates, and growth.