Gold fell to $5,118 per ounce on Monday, pressured by a stronger US dollar and diminishing expectations for Federal Reserve interest rate cuts, which together outweighed safe-haven demand stemming from the escalating conflict in the Middle East. Investor worries about the conflict’s economic fallout intensified after oil prices climbed above $100 per barrel. As the war with Iran enters its second week and oil tankers remain effectively blocked from the Strait of Hormuz, several Middle Eastern producers, including Kuwait, Iraq, and the UAE, have cut crude output as storage capacity nears its limits.
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