Gold prices are seen continuing to struggle with a drop in price at the opening of weekly trading around $4,600 as the market assesses the US-Iran geopolitical conflict in West Asia.
At 9.50 am, gold prices were at $4,623, down about 1.16% since it opened early Monday trading in the Asian session.
Global financial markets are now shifting to 'risk-off' mode following statements by US President Donald Trump, who issued a stern warning against Iran.
Trump stated that the United States would take military action, including destroying key Iranian infrastructure, if the country failed to reopen the Strait of Hormuz by Friday.
The threat included targets such as power plants and bridges, thus increasing tensions after a ten-day ceasefire period.
In response, Iran warned that it would launch retaliatory attacks on US infrastructure or related assets.
This development signals the risk of escalating conflict in the Middle East and has the potential to trigger broader instability in global markets.
In other developments, parts of Asian and European markets were closed for Easter Monday, reducing market liquidity. Investors are expected to turn their attention to the US trading session, which could see increased volatility.
Meanwhile, West Texas Intermediate (WTI) crude oil prices continued to rise and are now trading around $106 per barrel, their highest in more than a month, driven by concerns about supply disruptions due to geopolitical tensions in the Strait of Hormuz.
