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Gold Falls as Renewed Middle East Tensions Fuel Inflation Fears

Gold bracelets on display for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
Gold bracelets on display for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
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Gold Falls as Renewed Middle East Tensions Fuel Inflation Fears

Gold bracelets on display for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
Gold bracelets on display for sale at a gold shop in Istanbul's Grand Bazaar (AFP)

Gold prices fell on Monday as renewed US-Iran tensions pushed the dollar and oil prices higher, fuelling fears of inflation and reinforcing the higher-for-longer interest rate outlook.

Spot gold was down 0.7% at $4,506.49 per ounce at 1158 GMT after hitting a two-week high on Friday. The yellow metal dropped nearly 2% in May, its third consecutive monthly fall.

US gold futures for August delivery fell 1.2% to $4,536.70.

The dollar edged higher, making greenback-priced bullion more expensive for holders of other currencies, Reuters reported.

The US said it struck Iranian military sites over the weekend and Iran's Revolutionary Guards on Monday said they had targeted a US base in response, the latest exchange of attacks amid negotiations to end the three-month-old war.

"The optimism surrounding negotiations between the US and Iran aimed at ending the standoff in the Strait of Hormuz faded over the weekend," ActivTrades analyst Ricardo Evangelista said. "As a result, energy prices rebounded, reviving inflation concerns and reinforcing hawkish Federal Reserve expectations."

Brent crude oil prices gained more than 3% after the latest strikes. Higher oil prices can accelerate inflation and keep interest rates higher for longer. While gold is traditionally seen as a hedge against inflation, it loses its appeal in a high-interest-rate environment as a non-yielding asset.

Traders are now pricing in a Fed rate hike this year, with a 39% chance of a quarter-point increase in December, according to CME Group's FedWatch tool.

A host of Fed board members are set to speak this week, while major data releases are scheduled to include the ISM survey of manufacturing and the May payrolls report on Friday.

"Traders will be closely watching this week's key data releases as these have the potential to reshape expectations regarding the future path of Fed monetary policy, influencing demand for the US dollar and, consequently, the performance of gold prices," Evangelista said.

Spot silver rose 0.6% to $75.69 per ounce, platinum gained 1.3% to $1,941.15 and palladium was steady at $1,355.00.

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Business

Saudia to Expand Its Fleet with Delivery of 12 New Aircraft in 2026

Saudia Airlines will fly in pilgrims from across the globe. (SPA)
Saudia Airlines will fly in pilgrims from across the globe. (SPA)
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Saudia to Expand Its Fleet with Delivery of 12 New Aircraft in 2026

Saudia Airlines will fly in pilgrims from across the globe. (SPA)
Saudia Airlines will fly in pilgrims from across the globe. (SPA)

Saudia Airlines has finalized a deal with Airbus to receive 12 new aircraft in 2026 as part of its ongoing fleet expansion and modernization program.

By implementing this strategy, the airline aims to improve the efficiency of its current operations, expand its reach to new international markets, and enhance the overall travel experience for its guests, SPA reported.

The arrival of the Airbus A321neo marks another milestone in Saudia’s 2026 aircraft delivery program, following the introduction of its first Airbus A321XLR.

The airline expects to receive additional modern aircraft over the course of the year as it continues to strengthen and modernize its fleet.

The continued expansion of Saudia’s fleet supports the objectives of the Kingdom’s national strategies for the aviation, tourism, entertainment, and sports sectors, while also enhancing services for pilgrims.

Business

Macron Announces 93 Bn Euros in ‘Choose France’ Investments

France's President Emmanuel Macron attends a joint statement with Masayoshi Son, Chairman and CEO of SoftBank Group Corp., at the Elysee Presidential Palace in Paris, June 1, 2026. (Ludovic Marin/Pool Photo via AP)
France's President Emmanuel Macron attends a joint statement with Masayoshi Son, Chairman and CEO of SoftBank Group Corp., at the Elysee Presidential Palace in Paris, June 1, 2026. (Ludovic Marin/Pool Photo via AP)
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Macron Announces 93 Bn Euros in ‘Choose France’ Investments

France's President Emmanuel Macron attends a joint statement with Masayoshi Son, Chairman and CEO of SoftBank Group Corp., at the Elysee Presidential Palace in Paris, June 1, 2026. (Ludovic Marin/Pool Photo via AP)
France's President Emmanuel Macron attends a joint statement with Masayoshi Son, Chairman and CEO of SoftBank Group Corp., at the Elysee Presidential Palace in Paris, June 1, 2026. (Ludovic Marin/Pool Photo via AP)

President Emmanuel Macron said Monday that he was expecting foreign investments amounting to 93 billion euros ($108 billion) at a conference dubbed "Choose France", including on artificial intelligence and data centers.

Money already pledged as part of his annual investment meeting would surpass the sum of 87 billion euros raised over the past eight years combined, he said.

"This edition of Choose France alone will make it possible to crystallize a record amount of 93 billion euros in confirmed investments, for more than 15,000 jobs. It is obviously by far a record edition, and it is historic," Macron said.

This year's pledges include 45 billion euros from Japanese tech investor SoftBank, Macron said. Its founder, Masayoshi Son, said over the weekend that the money would be spent by 2031 on data centers in northern France.

They would also be spent on "artificial intelligence, on data centers" as well as semiconductors, critical minerals, tractors and trucks, steel and healthcare, the president said.

Macron said these projects would make it possible "to make France by far the leading country hosting data centers" and "computing capacity in Europe", as well as a "forward base for the production of AI robots, and for industrialization through AI".

"We are clearly in the process of closing the gap we had in terms of computing capacity in Europe," compared with the United States and China, he added.

Business

Saudi Fund for Development Moves to Globalize Private Sector, Expand Local Content Abroad

The Saudi capital (SPA) 
The Saudi capital (SPA) 
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Saudi Fund for Development Moves to Globalize Private Sector, Expand Local Content Abroad

The Saudi capital (SPA) 
The Saudi capital (SPA) 

The Saudi Fund for Development (SFD) is intensifying strategic efforts to integrate Saudi private-sector companies into major international development projects financed by the Kingdom, in a move designed to expand the global footprint of Saudi businesses and strengthen local content abroad.

The initiative targets Saudi contractors, engineering firms, suppliers, and consulting companies, enabling them to secure operational shares in international markets while prioritizing Saudi-made products and services beyond the kingdom’s borders. The effort aligns with Saudi Vision 2030 goals to diversify income sources and enhance non-oil economic growth.

The current portfolio of projects includes several international tenders across multiple continents. Among the most prominent are the construction and outfitting of the National Blood Transfusion Center in the Comoros, as well as the fifth phase of the Saudi Program for Well Drilling and Rural Development in Uganda.

Additional opportunities include major agricultural and environmental projects in Tunisia, notably the second phase of the Integrated Agricultural Development Project in Ghazala, Joumine, and Sejnane. Other tenders involve coastal protection works to combat marine erosion along the stretch from Gammarth to Carthage, in addition to a polyethylene pipeline distribution network project.

In the academic sector, the fund is also offering Saudi firms the opportunity to compete for civil works contracts related to the University of the West Indies Five Islands Campus project in Antigua and Barbuda.

The SFD has invited interested Saudi companies to access tender documents through its official website, emphasizing that it is coordinating directly with relevant authorities to provide technical and logistical support for local investors once procurement procedures are completed.

The move builds on the fund’s longstanding support for the private sector through the Saudi Export Program, which provides credit facilities and financing guarantees aimed at boosting Saudi exports and increasing the participation of national companies in overseas development projects.

The fund has also conducted assessments of the key challenges facing Saudi firms operating abroad, following requests for investors to identify obstacles hindering local content expansion and the prioritization of Saudi products in international projects.

Over the past five decades, the Saudi Fund for Development has financed nearly 800 development projects and programs worth more than SAR 81 billion ($21.6 billion) in over 100 developing countries. The scale of these investments reflects growing opportunities for Saudi contractors, engineering consultancies, and suppliers to expand their international presence and investment reach worldwide.