Gold prices drop below $4,300 as Iran, Israel exchange strikes

The price of gold slipped below $4,300 at the start of the trading week as renewed military hostilities between Iran and Israel weighed on commodity markets, with the precious metal marking a 0.7% decline from last week's close by 0600GMT on Monday. Weekly losses exceeded 4%, while the metal has shed 9.2% over the past month, according to Anadolu Agency.

Cross-Border Strikes

Iran launched a barrage of missiles toward northern Israel late Sunday in its first such attack since a fragile April ceasefire took hold, striking after Israeli forces hit Beirut's southern suburbs earlier in the day, according to regional security sources. The bombardment marked a significant breach of the months-long truce that had halted direct exchanges between Tehran and Tel Aviv.

Israeli warplanes responded on Monday with an airstrike against a petrochemical facility in Mahshahr, southwestern Iran, causing partial damage to the industrial complex, Iranian officials said. The Israeli military later confirmed that its air force had targeted several sites within the complex, adding that further operational details would be released.

Regional Context

Sunday's missile barrage marked the first major Iranian strike on Israeli territory since the April truce, which had temporarily halted direct military exchanges between the two regional powers. The renewed clashes come as global energy markets remain vigilant over potential disruptions to shipping lanes through the strategic Strait of Hormuz.