Gold is trading lower on Monday as a combination of profit-taking and geopolitical risks continues to drive prices.

At the time of writing, XAU/USD is trading around $3,390, as it retreats below the former $3,400 psychological support level.

The metal's safe-haven appeal, coupled with swings in US 10-year Treasury yields, remains the principal driver of prices; however, profit-taking at elevated levels has capped further gains. Geopolitical tensions continue to underpin demand: the conflict between Israel and Iran, now entering its fourth day, shows no sign of easing, and calls for de-escalation by the United Nations, Saudi Arabia, and the US have gone unheeded.

According to Reuters, US President Trump said he "hopes Israel and Iran can broker a deal," yet conceded that "sometimes they have to fight it out." Such mixed signals have hinted at potential rapprochement and outright conflict, keeping the risk premium elevated even as traders lock in profits.

Israel's attack on Iran has targeted military and nuclear sites. The so-called "Operation Rising Lion" was launched by Israeli leadership on Thursday evening and has resulted in the deaths of Iranian military leaders, scientists, and civilians.
The International Atomic Energy Agency (IAEA) reported on the attacks on Friday. The recent statement indicates that a few facilities have been damaged in Iran so far. The Natanz enrichment facility has sustained significant damage. The Isfahan (Esfahan) Nuclear Technology Center was also targeted, resulting in damage to the uranium metal production facilities.

Source: Fxstreet