Gold Slips Amid Profit-Taking and Middle East Tensions

Credit: Reuters

Spot gold was down 1.2% to $3,392.86 an ounce by 01:53 p.m. EDT (1753 GMT) after hitting its highest level since April 22 earlier in the session. Prices rose more than 1% on Friday.

U.S. gold futures settled 1% lower at $3,417.30.

"Keep in mind that gold has moved higher over the past several sessions, largely in response to the conflict between Israel and Iran. Today, we're seeing more of a pullback, likely due to profit-taking after that higher move," said David Meger, director of metals trading at High Ridge Futures.

Iran called on U.S. President Donald Trump to force Israel to cease fire as the only way to end the four-day-old aerial war, while Israeli Prime Minister Benjamin Netanyahu said his country was on the "path to victory".

Meanwhile, leaders from the Group of Seven nations begin annual talks in Canada.

U.S. stock index futures rose while the dollar was softer in choppy trading.

Investors are also focused on the Fed's two-day policy meeting, which wraps up on Wednesday. The U.S. central bank is widely expected to keep interest rates unchanged.

"At this point, it appears the Fed is inclined to remain on hold, given the significant uncertainty in the economy, ranging from tariffs to geopolitical tensions. So, it wouldn't be surprising to see the Fed delay any interest rate cuts, effectively kicking the can down the road," Meger said.

Bullion is viewed as a safeguard during times of geopolitical instability and rising inflation. It also benefits from low interest rate environments, since it doesn't offer any yield income.

Among other metals, spot silver steadied at $36.33 per ounce, platinum rose 2% to $1,252.57, while palladium gained 0.8% to $1,036.10.

At Mercury Gold, we offer a wide range of gold bars and coins for sale in Malaysia to suit your investment needs. As a trusted source for physical gold bullion in Malaysia, we also provide secure and convenient options, including gold savings accounts (Mercury Bullion Savings (MBS) program) which starts at just RM50. Discover the best place to buy gold in Malaysia with Mercury Gold, offering competitive prices and expert guidance on where and when is the best time to buy gold in Malaysia. Explore our platform to buy gold Malaysia online, to enjoy an easy and reliable experience. Invest with confidence and let Mercury Gold be your partner in building your investment goal.

Click here to view more.