Gold stays flat as investors weigh Middle East tensions

Mettis Global reported that gold prices were little changed on Monday as investors assessed how the Middle East conflict could affect inflation and interest rates. Spot gold slipped 0.52% to $4,355.04 an ounce by 10:41 am PST. Silver rose 0.8% to $66.76 an ounce, while platinum and palladium also edged higher.

The report said tensions between Washington and Tehran remained elevated as both sides exchanged fresh threats. Trump said Iran faced economic failure or a replacement of its leadership unless it accepted a deal, while Iran's military vowed a forceful response to any new strike. Oil prices declined as traders took into account a recovery in Saudi shipments, although fresh Houthi attacks in Yemen kept regional concerns alive.

CNBC reported that markets increasingly expect a new round of monetary tightening, with several central banks lifting rates and signalling further increases may be needed. On Friday the Bank of Japan also tightened, following the Federal Reserve's increase earlier that week and a move by the European Central Bank a week earlier. Minneapolis Fed President Neel Kashkari said US price pressures were too high across every sector.