Gold slips to 1-1/2-month low as Middle East tensions lift oil, cloud rate outlook

Gold prices fell on Monday to their lowest point in more than a month, as Middle East tensions ​pushed oil prices higher, fuelling inflation fears and reinforcing expectations of ‌higher-for-longer interest rates. Fundamentals Spot gold was down 1.1% at $4,488.99 per ounce, as of 0052 GMT, hitting its lowest level since March 30. The Week in Breakingviews newsletter offers insights and ideas from Reuters’ global financial commentary team. Sign up here. US gold futures for June delivery lost 1.5% ​to $4,493.30. Gold was pressured by rising geopolitical tensions after a drone strike ​caused a fire at a nuclear power plant in the United Arab ⁠Emirates, lifting crude prices and bets of interest rates. Saudi Arabia, meanwhile, reported ​intercepting three drones, as U.S. President Donald Trump warned that Iran must act “fast” ​after efforts to end the U.S.-Israeli war appeared to have stalled.