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Gold slides toward $4,000 as US-Iran tensions stoke inflation fears
The move came as rising oil risk from renewed US strikes on Iranian targets amplified concerns that central banks may keep interest rates elevated for longer.
Gold prices edged lower to near $4,000 during the early Asian session on Tuesday, extending the precious metal’s decline.
FXStreet attributed the weakness to escalating US-Iran tensions that pushed oil higher and intensified inflation worries, which can weigh on gold’s appeal as a non-yielding asset.
Bloomberg reported that US forces struck Iranian targets after President Donald Trump said Tehran would “pay” for the killing of three US soldiers, and US Central Command said the strikes began a new wave of actions on Monday, the 10th straight day of attacks.
The outlet cited UBS analyst Giovanni Staunovo saying gold remains negatively correlated with oil prices as traders monitor Middle East developments, while they also assess expectations for Federal Reserve policy, with swap traders assigning low odds to a July hike but pricing in at least one increase by year end.
Latest closeGold $3,981.40 ▼1.6%