FX.co ★ Gold Pares Gains

Gold held above $5,300 on Monday, trimming earlier gains after briefly surging past $5,419, as a sharp “buy-the-dip” rally in US equities eroded the metal’s safe-haven appeal. An initial wave of risk aversion following strikes on Iran had fueled a flight to safety, but the S&P 500 mounted a powerful midday rebound and turned positive, as investors grew more confident the conflict would stop short of a full closure of the Strait of Hormuz. Crude oil prices also pulled back from their session highs, easing the immediate inflation concerns that had helped propel gold’s rise. Renewed strength in major tech names such as Nvidia and Microsoft underscored a broader shift back into risk assets, while a jump in the ISM Manufacturing Prices Index to 70.5 pushed expectations for interest-rate cuts further out, bolstering the dollar. At the same time, a climb in Treasury yields further constrained bullion’s attractiveness.