Global gold prices recorded a sharp decline on Monday as rising geopolitical tensions, higher oil prices, and a stronger US dollar weighed heavily on the precious metals market.
According to a Reuters report, spot gold prices fell by 1.3 percent to US$4,553.53 per ounce during early trading. US gold futures also registered notable losses over the same period.
Market analysts said uncertainty surrounding the US Federal Reserve’s interest rate policy has increased caution among investors. As a result, many traders are shifting investments away from gold and toward the US dollar, putting additional pressure on the global gold market.
Fresh tensions in the Middle East have also influenced investor sentiment. Iranian media claimed that US warships in the Strait of Hormuz had come under attack, although Washington denied the reports. Nevertheless, concerns over the incident contributed to rising oil prices, intensifying fears of global inflationary pressure.
Han Tan, Chief Market Analyst at Bybit, stated that under the current circumstances investors are viewing the US dollar as a safer asset than gold.
Meanwhile, silver prices in the global market fell by more than 3 percent. Platinum and palladium prices also declined amid broader market volatility.
Analysts believe the latest developments in international commodity markets could affect Bangladesh’s local gold market within the next few days.
Source: Reuters