Gold steadies on dip-buying after hitting nearly 1-month low

After falling to a one-month low due to growing oil-driven inflation and predictions of prolonged interest rate hikes, gold prices stabilized on Monday due to dip-buying.

As of 0241 GMT, spot gold was unchanged at $4,540.36 per ounce, following its lowest level since March 30 earlier in the day.

U.S. gold futures for June delivery fell 0.4% to $4,543.70.Gold prices are currently experiencing a rise owing to profit-taking, but being in a difficult sideways range, according to Kelvin Wong, a senior market analyst at OANDA.

Gold plummeted to its lowest since March 30 earlier in the session as Middle East tensions raised oil prices, raising fears about inflation and longer-term interest rates.

UAE officials reported a drone strike causing a fire at a nuclear power station on Sunday.

Saudi Arabia intercepted three drones, while U.S. President Donald Trump urged Iran to act “fast” amid stalled U.S.-Israeli ceasefire attempts.

Oil prices rose to a two-week high on Monday.

Concerns about inflation stem from high oil prices. Central banks raise interest rates amid inflation, decreasing the appeal of non-yielding bullion.

According to CME Group’s FedWatch tool, markets are pricing in a 50% possibility of a U.S. Federal Reserve rate hike by December before year-end.

Investors await the Fed’s April meeting minutes, expected this week, for monetary policy guidance.

On Saturday, India, the world’s largest silver consumer, banned imports in all forms to reduce shipments and stabilize the rupee.

Silver slid 0.8% to $75.38 per ounce, platinum 0.1% to $1,972.10, and palladium 1.3% to $1,394.75.