FX.co ★ Gold Holds Decline Despite Ceasefire Talks

Gold traded below $4,700 an ounce on Monday, extending losses after a sharp decline in the previous session, as investors weighed reports of a potential ceasefire in the Middle East. According to media accounts, the US, Iran, and a group of regional mediators are in talks over a possible 45‑day ceasefire that could lay the groundwork for an eventual end to the conflict.

At the same time, President Donald Trump issued a new ultimatum to Tehran, threatening strikes on Iran’s power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Iran has rejected the latest demand and continues to target energy assets across the region.

Gold is down roughly 12% since the conflict began, as surging energy prices have intensified inflation concerns and strengthened expectations of further interest‑rate hikes. The metal has also struggled to perform its traditional safe‑haven role, pressured by forced liquidations as investors raised cash to cover losses elsewhere in the markets.