WASHINGTON (dpa-AFX) - Gold prices fell slightly on Monday after three consecutive sessions of gains.
Spot gold dipped 0.4 percent to $3,417.80 per ounce in early European trade, after having hit its highest level in nearly two months on signs of escalating tensions between Israel and Iran. U.S. gold futures were down half a percent at $3,437.
As Iran and Israel entered into the fourth day of the conflict, both countries pounded each other with missiles and threatened further attacks, stoking fears that the conflict could widen and significantly disrupt oil exports from the Middle East.
Early Monday, Israeli forces targeted a series of surface-to-surface missile sites in western and central Iran.
Iranian strikes on Tel Aviv, Haifa, and Petah Tikva killed at least five, injured dozens, and damaged key infrastructure, including a power plant.
As tensions escalate, U.S. President Donald Trump has expressed optimism about brokering peace.
Speaking to reporters before departing for the G7 Summit in Canada, Trump said, 'There's a good chance' that a ceasefire could be reached, although he added, 'sometimes they have to fight it out.'
World leaders have gathered in Canada for the G7 summit, which will address global security, economic resilience, and tech cooperation. Discussions to resolve the Middle East crisis will be a top priority.
Meanwhile, British Prime Minister Keir Starmer has said targeting Moscow with further action would 'undoubtedly' form part of talks at the international summit if the Kremlin continues to resist calls for an unconditional ceasefire.
The focus also remains on a slew of central bank decisions due this week. The Bank of Japan holds a policy meeting on Tuesday and is widely expected to hold rates at 0.5 percent while leaving the door open for tightening later this year.
The Swiss National Bank meets on Thursday and is expected to cut rates by at least a quarter point.
The Federal Reserve announces its decision on Wednesday, with investors looking for any hints about whether the U.S. central bank will lower rates in the coming months.
Markets are still wagering on two reductions by December, with a first move in September seen as most likely.
Central banks in Norway and Sweden will also announce their interest-rate decisions this week.
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