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Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
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Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Gold prices declined on Monday as a strengthening U.S. dollar and persistent inflation concerns weighed heavily on the precious metal. Spot gold dropped 0.6% to $4,720.67 per ounce, while gold futures slid 0.9% to $4,743.20 per ounce, reflecting growing bearish sentiment among traders.
The selloff was largely driven by the breakdown of ceasefire negotiations between the United States and Iran. Weekend talks held in Pakistan failed to produce any meaningful de-escalation, with both sides at odds over nuclear activities, Iran's backing of regional militant groups, and control of the Strait of Hormuz. Following the collapse of negotiations, President Donald Trump announced a naval blockade targeting Iranian ports and vessels, set to take effect at 10:00 ET. Tehran swiftly rejected the move, raising fears of a broader military conflict.
The geopolitical fallout sent investors rushing into the U.S. dollar as a safe-haven asset, pushing the dollar index up roughly 0.4% and adding pressure on dollar-denominated commodities like gold. Other precious metals also felt the strain, with silver falling nearly 2% to $74.3975 per ounce and platinum edging lower to $2,047.06 per ounce.
Compounding gold's struggles was a sharp uptick in U.S. consumer price index data for March. Inflation climbed 3.3% year-over-year, a significant jump from February's 2.4% reading, largely fueled by rising energy costs linked to the ongoing conflict and restricted oil flows through the Strait of Hormuz. The hotter inflation print reinforced expectations that the Federal Reserve will hold interest rates steady for at least the next 12 months, according to CME FedWatch data. Since higher rates increase the opportunity cost of holding non-yielding assets, gold's appeal continues to diminish in the current environment.
Traders are now turning their attention to upcoming U.S. producer price index data, which could further shape the outlook for monetary policy and gold's near-term trajectory.
