Gold Edges Lower After Gaining on Mideast War Uncertainty

Gold edged lower, seeking a new catalyst as the conflict between Israel and Iran entered a fourth day, Bloomberg reported.

The precious metal erased gains made earlier on Monday to trade close to $3,415 an ounce, about $80 short of an all-time peak set in April. The two countries continued to hit each other with barrages of missile and drones.

The sudden upsurge of geopolitical risk helped gold gain 3.7% last week, adding fresh impetus to a rally driven by the threat to global economic growth from President Donald Trump’s aggressive tariff agenda. Gold has risen around 30% in 2025, with central banks diversifying away from the dollar being another significant driver.

“Prices are still very close to the record, and given the geopolitical situation any further escalation will push them higher,” said John Feeney, an analyst at Guardian Gold Australia. “Gold has performed very well as a haven recently, and it seems a lot of investors are moving funds out of US bonds and into the metal over the longer term.”

Investors see the US dollar sliding further, according to a survey by Bank of America Corp. Short US dollar is currently both the most crowded trade and the highest conviction trade, according to the responses of 50 fund managers. Dollar weakness is good for gold, making it more affordable for buyers in different currencies.

Spot gold dipped 0.5% to $3,415.46 an ounce as of 10:04 a.m. in London. The Bloomberg Dollar Spot Index slipped 0.2%. Silver, platinum and palladium advanced.