(RTTNews) – Gold prices traded below $4,800 an ounce on Monday as the dollar strengthened, and bond yields surged amid uncertainty surrounding the second round of diplomatic talks between the United States and Iran.
Spot gold fell 0.8 percent to $4,795 an ounce while U.S. gold futures were down 1.4 percent at $4,813.14.
The dollar rose to its highest level in a week against major currencies and bond yields ticked higher amid the continued standoff around the Strait of Hormuz, reviving investor concerns around inflation and interest rates.
Hours after U.S. President Donald Trump announced delegation to Islamabad, Iran rejected participation in a second round of peace talks, citing Washinton’s excessive demands, unrealistic expectations, constant shifts in stance, repeated contradictions, and the continuing naval blockade, which it considers a breach of the ceasefire.
Tehran closed the Strait of Hormuz because of the U.S.’s ongoing blockade of its ports.
Earlier, two Indian-flagged vessels came under attack from Iranian gunboats while attempting to pass through when the shipping lane had opened.
Tehran’s top military command vowed to retaliate after U.S. forces have forcibly seized an Iranian-flagged cargo ship in the Gulf of Oman.
U.S. President Donald Trump has threatened to bomb Iran’s power plants and bridges unless Iran accepts his terms.
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