Precious Metals Preview: COMEX gold extends downside as dollar stays firm on inflationary concerns

COMEX gold opened on a weak note on Monday morning in Asia amid concerns that war-driven surge in energy prices would revive inflationary pressures. Crude Oil prices advanced to a nearly four-week high on Monday in reaction to US President Donald Trump's threat to target Iran?s power plants and bridges if the Strait of Hormuz is not reopened by Tuesday. Prospects for higher interest rates globally weighed on the yellow metal. Meanwhile, the upbeat US Nonfarm Payrolls (NFP) report released on Friday signaled a still resilient labor market and boosted speculation that the Fed will hold rates higher for longer to combat inflation. Dollar index holding up around 100 mark are adding pressure on gold prices which are currently quoting lower at $4661.10 an ounce.

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