Gold edged lower on Monday, pulling back from earlier gains as investor anxiety over a wider regional war faded. The spot price hovered near US$3,390 an ounce—about US$110 shy of its all-time high set in April.
The pullback came as Israel and Iran exchanged fire for a fourth straight day, but Tehran indicated a desire to de-escalate tensions and resume nuclear negotiations with the United States, according to The Wall Street Journal. That helped cool fears of a broader regional conflict.
Gold had surged 3.7% last week, buoyed by the sudden geopolitical risk as well as growing concerns about global growth, fuelled in part by President Donald Trump’s aggressive new tariff agenda.
The metal has climbed roughly 30% in 2025, with analysts citing strong central bank buying and diversification away from the US dollar as key underlying drivers.
