Gold prices fell on Monday, coming under pressure from a stronger dollar after ceasefire talks between the U.S. and Iran largely fell through, sending traders into the dollar as a safe haven.

Bullion was also pressured by strong U.S. consumer price index inflation data from Friday, which further dented bets on any near-term interest rate cuts by the Federal Reserve. 

Spot gold fell 0.6% to $4,720.67 an ounce by 01:06 ET (05:06 GMT), while gold futures fell 0.9% to $4,743.20/oz. 

Other precious metals also retreated, with spot platinum down slightly to $2,047.06/oz, while spot silver fell nearly 2% to $74.3975/oz. 

Dollar gains as U.S.-Iran talks fall through, Hormuz blockade looms

The dollar index rose some 0.4% on Monday, with the greenback benefiting from increased haven demand after ceasefire talks between Iran and the U.S. yielded little consensus.

Marathon talks were held in Pakistan over the weekend, but pointed to little de-escalation in the conflict as Washington and Tehran clashed over nuclear activities, the Strait of Hormuz, and Iran’s support of militant groups in the Middle East.

U.S. President Donald Trump ordered a naval blockade of the Strait of Hormuz after talks fell through, but later clarified that the blockade will target Iran’s ports and ships specifically. 

The blockade is set to begin from 10:00 ET (14:00 GMT), and could herald a military escalation in Iran. Tehran largely rebuked U.S. plans for the blockade. 

U.S. CPI rises sharply in March on energy boost 

Adding to pressure on gold, U.S. consumer price index inflation data showed a sharp increase in March, as the Iran war spurred increases in fuel prices.

CPI grew 3.3% year-on-year in March, missing expectations of 3.4%, but rising sharply from 2.4% in February. 

The data stoked increased concerns over higher oil and gas prices– due to the Iran war– spurring increased inflation across the globe. The Strait of Hormuz, a key energy shipping route, has remained largely closed since late-February, with a U.S. blockade heralding scant prospects for reopening. 

The CPI data spurred a further paring back in bets on any interest rate cuts by the Federal Reserve for at least the next 12 months, CME Fedwatch showed. Such a scenario bodes poorly for gold and other non-yielding assets, with rate concerns having been a key driver of gold’s underperformance since the onset of the Iran war. 

Fears of steady rates largely overshadowed gold’s status as a safe haven, while a stellar rally in the yellow metal through late-2025 also deterred buyers. 

U.S. producer price index inflation is due later this week.