Gold Drops as Renewed U.S.–Iran Strikes Revive Inflation, Rate-Hike Bets
- Gold fell as much as 1.6% to around $4,050–$4,060 an ounce on Monday, reversing its traditional safe-haven role as the U.S.–Iran flare-up pushed oil higher and reignited fears the Fed may need to keep rates elevated (Bloomberg).
- The selloff reflects a 'risk-off but anti-gold' dynamic — traders are dumping bullion not because risk appetite returned, but because energy-driven inflation could force the Fed's hand on tightening, lifting real yields.
- The move underscores the unusual macro mix shaping Monday's session: a stronger dollar, surging oil, falling gold, and rising short-end Treasury yields all at once.