Gold falls after Iran nuclear deal GOLD futures have fallen as investors have their first chance to respond to the historic deal on limiting nuclear proliferation reached between Iran and six world powers. The most actively traded contract, for December delivery, on Monday fell $US2.90, or 0.2 per cent, to settle at $US1,241.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Gold prices slumped as low as $US1,225.70 an ounce after the preliminary accord, reached on Sunday, was announced. Iran promised to freeze its nuclear program in exchange for easing the economic sanctions that have gripped the country's access to foreign exchange. Gold's declines came as optimism over the deal saw some investors who hold the metal as a hedge against geopolitical uncertainty reduced those stakes. Oil futures also fell on the Iran news, amid expectations that more crude oil will flow to the global market as a result of the agreement. Some investors buy gold as a hedge against inflation, and keep an eye on oil prices, as energy costs are a key component of inflation measures. "Inflation is off the table with the lower energy prices," said Frank McGhee, head precious metals dealer with Integrated Brokerage Services LLC, a Chicago-based brokerage. "Gold is just going to continue its grind down," he said. Still, futures pared their steepest losses by the time Comex floor trading closed on Monday, as the Iran nuclear developments have not been a major factor for the precious metals market in the first place, said Bob Haberkorn, a senior commodities broker with RJO Futures. "I think this Iran news will be short lived in the precious metals market," he said.